Wal-Mart Stores Inc WMT 0.4% announced a pay increase for more than 34,000 of its workers in April 2015. Not even three years later, the retail giant announced another bump and additional benefits for its employees.
What You Need To Know
In 2015, Walmart promised to pay all of its employees at least $10 per hour by February 2016. On Thursday, Walmart promised to boost its minimum pay to $11 per hour along with an expanded maternity and parental leave benefits. Nearly 85,000 employees with 20 years’ seniority will quality for a $1,000 cash bonus, and another 200,000 workers will get a $750 bonus. Other new initiatives the company announced include a benefit to assist associates with adoption expenses.
Why It’s Important
Walmart’s announcement comes at a time when multiple companies are passing along some of their tax savings from the tax bill signed by President Donald Trump to employees.
“We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders,” Doug McMillon, Walmart president and CEO, said in a statement.
“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 U.S.”
Walmart said the benefits will result in more than 1 million hourly wage associates reaching a better financial position. The changes take effect in February.