The Swedish furniture giant handed over a declaration of intent to Evelyn Zupke, the top official in charge of atoning for the injustices of the former East German communist government.
The declaration was the result of "close exchanges over several years" between Ikea, the victims' group UOKG and Zupke, who became the government commissioner on the issue in 2021, her office said in a statement.
"For me, Ikea's commitment to supporting the hardship fund is an expression of a responsible approach to the dark chapters of the company's history," Zupke said.
Ikea admitted following an independent investigation in 2012 that some of its suppliers had used political prisoners in East Germany as forced labourers in the late 1970s and early 1980s.
"We deeply regret that products for Ikea were also produced by political prisoners," said Walter Kadnar, the head of Ikea in Germany.
Germany's three-way coalition government pledged when it took office in 2021 to establish a hardship fund for victims of crimes committed under the East German government before German unification in 1990.
The German parliament is due to vote on the establishment of the fund in the coming weeks.
Kadnar said Ikea had long ago assured the people affected that it would atone for the mistreatment they faced.
"We therefore welcome the implementation of the hardship fund and are pleased to be able to keep our promise," he said.
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