Minimum wage workers at Walmart will be getting a rate increase in the near future. The company plans on boosting its minimum wage to $11 an hour starting in February.
On top of that, eligible employees will receive a one-time payment of $1,000 as a bonus. This change is set to affect over a million hourly workers in the country.
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” Walmart President and CEO Doug McMillon said in a statement.
“It’s our people who make the difference and we appreciate how they work hard to make every day easier for busy families.”
The bonuses are dependent on how long an employee has worked at the company. Bonuses will start at $200, but employees who worked at Walmart for 20 years or more will receive the full $1,000 bonus.
In addition to the rate increase and bonus program, Walmart is expanding their paid family leave benefits as well.
They are extending maternity leave from six weeks to ten weeks for full-time expecting mothers.
The company also created a paid leave program for fathers and non-birthing mothers. These full-time employees will get six weeks of paid leave.
McMillon credited President Trump’s recent tax plan as the reason for the wage increase.
He said that the tax break “gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”
Other companies, such as AT&T, Comcast, and Wells Fargo have followed similar routes in the wake of the tax break.
Some of these companies are increasing their minimum wage, while others are offering bonuses to some of their staff members.
When it’s all said and done, the wage increase will cost Walmart $300 million. The bonuses will add another $400 million.
That’s chump change when you consider the fact that Walmart is expected to save $2 billion under Trump’s new tax plan.
Even without a tax break, though, Walmart has been paying their employees a higher wage as time has passed.
Walmart has steadily raised their minimum wage for workers over recent years. They increased to $9 an hour in 2015, then to $10 a year later.
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