Walmart boosts starting salary to $11 an hour

Walmart boosts starting salary to $11 an hour

Walmart boosts starting salary to $11 an hour

The change will give full-time hourly workers at Walmart stores the same maternity- and parental-leave benefits as the company's salaried employees.

Walmart, the world's largest private employer, is boosting its starting salary for US workers to $11 an hour, giving a one-time cash bonus of up to $1,000 to eligible employees and expanding its maternity and parental leave benefits. Skeptics have said these initiatives represent a pittance compared with the profit gains expected from lower tax rates, some of which is expected to go to higher executive pay, shareholder payouts and share buybacks.

"Today, we are building on investments we've been making in associates, in their wages and skills development", said Walmart CEO Doug McMillon in a statement. Would Walmart have still increased worker pay and approved bonuses without the tax decrease?

The starting wage increase takes effect February 17 and applies to employees at all U.S. Walmart stores, including Sam's Clubs, eCommerce, its logistics personnel and workers at its home office in Bentonville, Arkansas.

Walmart is also offering assistance to employee seeking to adopt a child.

Rival retailer Target Corp raised its minimum wage to $11 in September, and said it would raise its minimum wage to $15 by 2020.

The hike announced on Thursday will also increase the average hourly pay for full-time employees to $14.50 from a current $13.85. Those with 20 years of service will get the full $1,000. The one-time cash bonuses, meanwhile, will cost the company about $400 million, or about 0.08 percent of its annual revenue. (While President Trump hasn't yet tweeted to crow about the move, past experience suggests it may only be a matter of time.) But taxes are hardly the whole story.

Walmart said it was still assessing new USA tax rules and "potential additional investments".

The closures came on the same day that Walmart announced it would boost its starting salary for USA workers to $11 an hour and hand out one-time cash bonuses.

Walmart is the latest company to announce bonuses in light of the Republican tax overhaul. This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately.

On the heels of the USA tax overhaul, the world's largest retail Walmart (WMT) announced Thursday it plans on sharing the new wealth to its employees.

Wage increases at the lower end of the scale are typically a sign that labor markets are tight, said Elise Gould, a senior economist at the Economic Policy Institute.

"We will be able to invest even more in aircraft and facilities, and we will be able to do so with even greater confidence about the future", he said.

Walmart will also offer other nonpecuniary forms of compensation such as expanding its parental and maternity leave policy.

"A better solution would be to raise the federal minimum wage and not leave it up to corporations", Gould said.

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