IKEA Pay Rates 2026: Store, Casual & Distribution Centre Pay

IKEA Australia employs around 4,000 people across stores, customer fulfilment and distribution. Store co-workers are covered by the IKEA Enterprise Agreement 2023 (approved August 2023, nominal expiry 31 May 2027). Distribution and customer distribution centre workers have their own deal — the IKEA DC CDC Enterprise Agreement 2025 (approved December 2025, nominal expiry 31 August 2028).

The safety net underneath is the General Retail Industry Award 2020 (MA000004) in stores and the Storage Services and Wholesale Award 2020 (MA000084) in the DCs. The agreements set rates above those floors — the agreement document is the source for the actual IKEA grid, and the award figures below are the minimum it must beat. Check your exact legal floor with our retail worker pay rate tool.

From 1 July 2026, the minimum hourly rates under the General Retail Industry Award are:

Source: Fair Work Commission modern awards pay database, rates operative from 1 July 2026. If you're 21 or older and your IKEA payslip shows less than Level 1, something is wrong — run it through our payslip checker.

The retail award's junior ladder is a percentage of the Level 1 adult rate. From 1 July 2026:

• Under 16: 45% — $12.51/hr
• 16 years: 50% — $13.91/hr
• 17 years: 60% — $16.69/hr
• 18 years: 70% — $19.47/hr
• 19 years: 80% — $22.25/hr
• 20 years: 90% — $25.03/hr (100% — the full $27.81 — once you've been with IKEA more than 6 months)

Your rate must step up from the first pay period after your birthday. The agreement's junior scale must leave you better off than this ladder overall — if your agreement rate is below the award figure for your age, that's worth querying.

The award floor for permanent adult store staff outside ordinary spans:

• Saturday: 125% — $34.76/hr at Level 1
• Sunday: 150% — $41.71/hr
• Public holiday: 225% — $62.57/hr

Casuals are paid 150% of the ordinary rate on Saturday, 175% on Sunday and 250% on public holidays (those percentages already include the casual loading). The IKEA agreements restructure some of these into their own penalty tables — the package must still leave you better off overall. Check a specific shift with our penalty rates calculator.

In the DCs and CDCs the relevant award is the Storage Services and Wholesale Award. From 1 July 2026 the adult floor is:

• Storeworker grade 1: $27.08/hr on commencement, $27.41 after 3 months, $27.72 after 12 months
• Storeworker grade 2 (forklift and specialised equipment): $27.97/hr
• Storeworker grade 3 (team leading, inventory control): $28.77/hr
• Storeworker grade 4 (supervisory): $29.61/hr

Casuals add 25% to each figure. Award penalties in storage are heavier than retail: Saturday 150%, Sunday 200%, public holidays 250%, with overtime at 150% for the first two hours and 200% after. The DC CDC agreement sets the actual site rates above this floor.

Match your payslip to your classification in the relevant agreement, then to the award floor above. Common catches: junior rate not stepped up after a birthday, the 20-year-old 6-month step to full adult rate missed, weekend penalties absorbed into a flat rate that doesn't actually cover them, and DC staff classified at grade 1 while regularly operating equipment that is grade 2 work. Price any gap with our back-pay calculator, raise it with your People and Culture contact in writing, and if it isn't fixed, the Fair Work Ombudsman (13 13 94) recovers underpayments at no cost — up to six years back.