Strategy: Walmart is giving its workers a huge pay raise and a cash bonus of up to $1,000 (WMT)

Walmart is raising starting wages for hourly employees to $11 and offering a one-time cash bonus of up to $1,000, the company said Thursday.

• Walmart is raising hourly pay from $9 to $11 as a result of recent tax law changes.
• It's also offering employees a one-time cash bonus of up to $1,000, expanded maternity and parental leave benefits, and assistance with adoption expenses.
• The changes will impact more than one million Walmart employees in the US.

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Walmart is raising starting wages for hourly employees to $11 and offering a one-time cash bonus of up to $1,000, the company said Thursday.

The retailer is also expanding maternity and parental leave benefits, as well as creating a new benefit to assist with adoption expenses.

Previously, Walmart's starting pay was $9 for all hourly employees, or $10 for those who completed a training program.

The wage and benefit changes will take effect in February and impact more than one million Walmart employees in the US, the company said.

Walmart CEO Doug McMillon said the changes are a direct result of recent tax law changes.

"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," McMillon said in a statement. "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 US," he added.

The cash bonus will go to employees that don't benefit from the new wage increases — meaning they are already paid more than $11. It will range from $200 to $1,000 depending on workers' length of employment with Walmart.

The new parental leave benefits include 10 weeks of paid maternity leave and six weeks of paid parental leave for full-time hourly associates. That benefit will also go to parents who adopt.

Additionally, Walmart will contribute $5,000 toward the cost of adoption for its workers.

Walmart is raising starting wages for hourly employees to $11 and offering a one-time cash bonus of up to $1,000, the company said Thursday. Read Full Story