Finance

Walmart Increases Minimum Wage for US Employees after Tax Code Changes

Walmart Increases Minimum Wage for US Employees after Tax Code Changes

"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S", said Doug McMillon, Walmart president and CEO. Target hiked its starting wage to $11 previous year, and plans to raise it to $15 by 2020.

As far as 63 Sam's Club stores closing across the nation, Hatfield says Those in Texoma will remain open.

News that Walmart was raising its minimum wage was seized upon by the USA government as evidence that companies were sharing the benefits of the Trump administration┬┤s recent cut in the top rate of corporate tax from 35% to 21%.

Ten of the affected stores will be turned into e-commerce distribution centers, and employees of those stores will have the opportunity to reapply for positions at those locations, a Walmart official said. "A minimum wage that is below the market wage is an irrelevant rule", Guell said.

These developments point to the actual forces that drive pay growth: Increased aggregate demand leads to more jobs, depleting the pool of unemployed workers, and forcing businesses to compete with each other for labor. Walmart employees previously started at $9 an hour, with a bump up to $10 after completing a training program.

Soon after the Republican bill passed Congress last month, companies including Wells Fargo, Boeing and AT&T said they would raise wages and hand out bonuses.




But low unemployment has meant that retailers have had trouble attracting and keeping talented workers, experts said. Employees who have worked for at least 20 years will get the full $1,000. The decision essentially increases wages for anyone making below $11.00 an hour - but anyone already making above that, the union argues, might not see anything except the bonus.

The raise in wages will cost Walmart between $300 million and $400 million a year and another $400 million in one-time bonuses.

BJ's Wholesale Club said in a statement that it has received "numerous inquiries from Sam's Club employees" since the news of the shutdowns were announced, adding that it is accepting resumes.

Parental leave has been another area in which retailers including Target and Ikea have been trying to offer better benefits.

To much fanfare, Walmart announced a pay hike Thursday for its one-million-plus army of hourly employees. Walmart has also made plans to expand its maternity and parental leave benefits for hourly employees. Salaries workers would also receive six weeks of paid parental leave. They are based on company seniority and how long workers have been with the organisation, amounting to an additional $400m.

Walmart will provide financial assistance of $5,000 per child to both hourly and salaried employees.