Walmart giving workers pay raise, cash bonus up to $1000

  • Walmart giving workers pay raise, cash bonus up to $1000

Walmart giving workers pay raise, cash bonus up to $1000

In addition, employees pursuing adoption will receive assistance from Walmart. The firm also said it would give a one-time $1,000 bonus to more than 13,500 employees.

A senior company official who declined to be named said about 62 stores would be affected, about one tenth of the chain overall. 11, 2018, Walmart announced it is boosting its starting salary for USA workers to $11 an hour, giving a one-time $1,000 cash bonus to eligible employees and expanding its maternity and parental leave benefits.

Rising wages reflect a generally tight labor market. The company also announced that it's closing dozens of stores.

"I think they did that.to help people, help the community, help the employees, and help their families", said Matthew Sammons, a Walmart employee in Wilmington of 10 years. "The fact that they are raising their hourly rates will catch the eye of competing retailers".

It did not disclose how many people would lose their jobs, but said some workers may be placed at other Walmart locations.

But the low unemployment has meant that retailers have had trouble attracting and keeping talented workers, experts said. Walmart employees previously started at $9 an hour, with a bump up to $10 after completing a training program.

The minimum wage hike will begin in February, the big-box retailer reports.

"They raised the minimum wage because they have to", Mark Zandi, chief economist at Moody's Analytics, said.

However, considering the current labor market, companies might have made some of these changes even if corporate taxes were not reduced. Eighteen U.S. states increased their minimum wage on Jan.1 but the federal minimum wage has been $7.25 since 2009. Rose would like to pay more, but she'd have to raise her prices and fears that would turn away customers. Boeing, AT&T, Wells Fargo, and Comcast have all said they were either investing more in the USA or offering perks to employees, from bonuses to minimum wage boosts to other investments in employee development.

So, although Walmart estimates that the wage increase and bonus will cost the country around $700 million, the move could prove to be well worth it in the long-run. Back in October, before the tax reform bill passed, Target raised its wages to $11 an hour and committed to paying its workers $15 by 2020.

"Today, we are building on investments we've been making in associates, in their wages and skills development", Walmart president and CEO Doug McMillon says in a statement. The amounts of the one-time bonuses depend on how long an employee has worked for the company. Walmart will raise entry-level wages for U.S. hourly employees to US$11 (RM44) an hour in February as it benefits from last month's major overhaul of the USA tax code and competes for low wage workers in a tight labour market.

Many anti-poverty advocates say even that's too low. The company's president said the new law gives them the opportunity to be more competitive globally. Hourly employees at its websites, distribution centers and its Bentonville, Arkansas, headquarters, will benefit from the wage increase. The bonus is based on length of service, with workers with at least 20 years qualifying for $1,000. Wal-Mart employs around 130,000 people in the two states out of a US workforce of 1.5 million, according to the company's website. According to the company, the changes will benefit more than a million hourly employees in the U.S. Before, full-time hourly workers received 50 percent of their pay for leave. Salaried associates will also receive six weeks of paid parental leave.

There are plenty of reasons for companies to reward workers right now.

McMillon also said the company is "early in the stages of assessing the opportunities" that tax reform creates for Walmart.