Walmart has announced that they’re raising their minimum hourly wage from $9 to $11, and expanding their paid parental leave benefits.
With over 1 million hourly workers, Walmart is America’s largest employer. They announced that the changes were partially motivated by the savings they expect from the new tax plan, which offers expansive tax cuts for major corporations.
Of all the retails in the S&P 500, Walmart is the first to raise hourly wages because of the tax law. With sweeping pay increases, the decision could motivate other corporations to do the same.
When Will Walmart Raise the Minimum Hourly Wage?
According to Walmart, the raises will go into effect during the middle of February. They also plan to give cash bonuses to certain part-time and full-time employees. The bonuses start at $200 for employees that have been working there for two to four years. They go all the way up to $1,000, for employees who have been at Walmart for 20 plus years.
The wage increases will apply to all of Walmart’s hourly workers in the US, including those who work at its Sam’s Clubs locations. In addition, full-time hourly workers will receive 10 weeks of paid maternity leave, and 6 weeks of paid parental leave. The current plan includes six to eight weeks of partially paid maternity leave, and offers no parental leave. Moreover, Walmart is offering adoption benefits of $5,000 per child to both full-time hourly and salaried employees.
“Today, we are building on investments we’ve been making in associates, in their wages and skill development,” said Doug McMillon, the president of Walmart. “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
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The raise in minimum hourly wage is substantial. However, it still falls behind the offer of one of their main competitors. Target announced plans to raise their minimum wage from $11 to $15 by 2020.
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Data Source: washingtonpost.com
Image Source: sun-sentinel.com