Published: Thu, January 11, 2018
Business | By Tara Barton

Walmart to Raise Minimum US Wage to $11 an Hour

Walmart to Raise Minimum US Wage to $11 an Hour

Walmart is boosting the minimum hourly wage for its USA employees to $11 and dishing out bonuses of up to $1,000, crediting President Trump's tax cut for enabling the move.

Wal-Mart said the new tax law will create "some financial benefit for the company" and that is it is in the early process of assessing additional investments.

The pay increase, Wal-Mart's third minimum wage increase since 2015, and bonus will benefit more than 1 million USA hourly workers, it said.

"However, some guiding themes are clear and consistent with how we've been investing - lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology".

"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the USA", Doug McMillon, CEO of Walmart, said in a news release.

Walmart CEO Doug McMillon said the changes are a direct result of recent tax law changes.

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The wage hike comes after several years of Walmart raising the floor on its hourly pay.

President Trump and his fellow Republicans have argued that the corporate tax cut, part of the biggest overhaul to the United States tax code in 30 years, will benefit workers and lead to more investment by U.S. companies.

The retailer has spent about $2.7 billion to increase wages over the past few years. "The tax cut made it easier for the company to swallow".

The company is also boosting its paid maternity leave policy for full-time hourly workers to 10 weeks at full pay.

Currently, Wal-Mart's starting wage is $9 US until workers complete a training program.

Walmart, which said the changes would take effect in mid-February, also plans to give one-time cash bonuses to some part-time and full-time workers, ranging from $250 (for workers who have been at Walmart for two to four years) to $1,000 (for those who have been working there for 20 or more years). Walmart said the one-time bonuses would cost the company $400 million and will be based on length of service.

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