Walmart Boosts Wages, Introduces Paid Parental Leave, Cash Bonuses, and More
BENTONVILLE, AR – Walmart has announced plans to increase the company's starting wage rate for all hourly associates in the U.S. to $11, expand maternity and parental leave benefits, and provide a one-time cash bonus for eligible associates of up to $1,000.
“Today, we are building on investments we’ve been making in associates, in their wages and skills development,” said Doug McMillon, President and CEO, in a press release. “It’s our people who make the difference, and we appreciate how they work hard to make every day easier for busy families.”
The company’s wage hikes will take effect in February, and are expected to add approximately $300 million incremental to what was already included in next fiscal year’s plan. And the one-time bonus, the company noted, will represent an additional payment to associates of approximately $400 million in the current fiscal year, which ends Jan. 31, 2018.
“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,” added McMillon “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.”
The company noted that new tax laws will create financial benefit for the company and will allow the company to offer incentives to its employees. Walmart also noted that the company is still in the early stages in the process of assessing potential additional investments—which will benefit both its associates, customers, and shareholders and strengthen the company’s position.
Walmart also introduced new plans to provide financial assistance to associates adopting a child. For more information on Walmart’s wage increases, read the company’s press release in its entirety here.