IKEA Dublin has said it will pay all its workers the Living Wage of €11.50 per hour.
The company said that its 413 workers at its Ballymun outlet will get the pay rise on Friday.
IKEA said the move is part of a wider transformation of basic conditions as it looks to ensure that its staff have the right level of pay, the right contract and an appropriate schedule.
As part of this, IKEA is also introducing a proportionate pay increase for 129 team leaders.
It also said it would commit to giving all customer-facing workers one weekend off in four.
"Implementing the Living Wage is not only the right thing to do for our co-workers but it also makes commercial sense," said Marsha Smith, Store Manager at IKEA Dublin.
"It is vital to the ongoing success and sustainability of the business that we retain co-workers as well as attract the top talent in the local market place," Ms Smith said.
"We believe that a team with good compensation and excellent working conditions will continue to provide our customers with a great shopping experience," she added.
The Living Wage of €11.50 is calculated by the Living Wage Technical Group Ireland.