Walmart to increase its minimum hourly wage to $11, give bonuses, close 63 Sam’s Club stores
Photo by Shutterstock

Walmart to increase its minimum hourly wage to $11, give bonuses, close 63 Sam’s Club stores

January 11, 2018

The Raw Data

Unspun and unbiased. These are the facts.

Walmart announced on Thursday it would increase its minimum hourly wage to $11 in February for all hourly employees in the U.S. The company also said it would give hourly employees one-time bonuses of between $200 and $1,000, depending on seniority. Walmart said it expects the wage increase to cost $300 million for its next fiscal year, which starts Feb. 1, and the bonuses to cost $400 million. Walmart also announced on Thursday that it would close 63 Sam’s Club stores, converting about a dozen of them into distribution centers.

Sam’s Club has not announced how many employees would be affected by the closures.

In addition to the minimum wage increase and bonuses, Walmart announced other benefit increases. These include: financial assistance for full-time employees who are looking to adopt children, 10 weeks of paid maternity leave or six weeks paid paternity leave for full-time hourly employees, and six weeks paid paternity leave for salaried employees.

The federal minimum hourly wage has been $7.25 since 2009. States have individually raised their minimum wages, with some already at $11 per hour. In 2015, Walmart raised its minimum hourly wage to $9, and in 2016 to $10 for workers who complete a training course.

As a comparison, Target announced in October that it would increase minimum hourly wage for its workers to $11, and to $15 by the end of 2020.

Last month, the U.S. passed a tax reform law that lowered the corporate tax rate from 35 to 21 percent. Walmart CEO Doug McMillon said, “Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.”

Walmart is the largest non-governmental U.S. employer.

Sources: Bloomberg, Business Insider, USA Today