Walmart employees will soon feel the effects of recent GOP-led tax reforms in the place it matters most: their pockets.
“The big-box retailer announced Thursday it will increase its starting wage rate for hourly employees in the U.S. to $11, and expand maternity and parental leave benefits,” according to CNBC.
NPR reports that the “wage hike comes after several years of Walmart raising the floor on its hourly pay.”
Walmart, the favorite target of attacks on the left for exploiting their workforce, will include a one-time cash bonus to eligible employees as high as $1,000, depending on seniority. The payout will cost Walmart a total of $400 million dollars.
Excited to share some news today! We’re raising our starting wage for all hourly associates in the U.S., expanding benefits & offering a one-time bonus! ? Learn more from CEO Doug McMillon: https://t.co/vgBJ1KRLB6 pic.twitter.com/pPEdZCYSr1
— Walmart (@Walmart) January 11, 2018
Walmart will also offer other nonpecuniary forms of compensation such as expanding its parental and maternity leave policy.
According to The New York Times, the company will “expand its maternity and parental leave policies to give full-time hourly employees 10 weeks of maternity leave and six weeks of paid parental leave.”
The changes will benefit their more than 1 million hourly employees as soon as February. The wage increases are expected to cost the retail giant $300 million in what they are already planning for the upcoming fiscal year.
“Retailers have traditionally paid one of the highest effective corporate tax rates,” Sandy Kennedy, the president of the Retail Industry Leaders Association, said last month.
“A fairer and more competitive tax code will give retailers the ability to modernize stores, invest in their workforce and continue to transform the shopping experience for consumers,” he continued.
Walmart is the latest in the long line of businesses promising to pass on the tax cuts to their employees or in domestic investments.
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