Starting in February, Walmart plans to raise minimum wage and add new employee benefits for over 1 million hourly wage associates of the over $450 billion company.
According to a statement released by Walmart on Thursday, Jan. 11, Walmart plans to “raise their employee wages to $11, expand maternity and parental leave benefits and provide a one-time cash bonus for eligible associates of up to $1,000.”
This rise in wages and benefits comes after an extensive fight by Republicans in the House and Senate to pass the biggest tax reform overhaul since President Ronald Reagan. The tax reform includes numerous gains for corporations and big business including a large corporate tax reduction from 35 percent to 20 percent.
According to the same statement, Doug McMillon, Walmart president and CEO, stated, “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. 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 is not the only company helping their employees with the new tax reform. Other companies including Southwest Airlines, AT&T, Bank of America and American Airlines have stated their plans as well to give back to their employees, according to CNN.
This pay raise, effective during the Feb. 17 pay cycle, with extended 10-week-pay maternity leave and a one-time bonus, is just one way that Walmart is using their tax break to benefit and invest in their employees.
You can read more about the plans in their statement.