Tuesday, 21 August, 2018

Yet Another Company Announces One-Time $1000 Bonuses

Wal-Mart to Increase Starting Wages to $11 Wal-Mart to Increase Starting Wages to $11
Nellie Chapman | 11 January, 2018, 21:24

The increase in wages will cost approximately $300m on top of wage hike plans that had been included in next fiscal year's plans, the company said.

The retailer's hourly workers now make a starting wage of $9, which is increased to $10 after they complete a training program.

In offering the bonuses, Walmart joins companies including American Airlines, AT&T and Bank of America that have announced $1,000 worker payouts following the passage of the Republican tax plan that slashed the corporate tax rate from 35 percent to 21 percent.

Walmart has gained 1.16% so far this year.

The one-time bonus between $200 and $1,000 based will be given to Walmart employees that won't receive a pay raise. The company is also creating a new benefit to assist associates with adoption expenses.

"Today, we are building on investments we've been making in associates, in their wages and skills development", said Doug McMillon, Walmart president and chief executive officer, on Thursday "It's our people who make the difference and we appreciate how they work hard to make every day easier for busy families". The payscale for hourly workers will be from $11 to $24.70 per hour, the company said.

Wal-Mart employs about 2.2 million people globally, with more than 1.5 million in the United States and had total global revenue of almost $500 billion previous year. The company said its new wage hike will be effective for the February 17 pay cycle.

The retailer has spent about $2.7 billion to increase wages over the past few years.

The one-time bonus will amount to $400m in the current fiscal year and the company will take a one-time charge in the fourth-quarter of the current fiscal year to account for the charge.

Shares of the retailer are trading 0.36% higher at $100.03 after the announcement.

Walmart also announced expansion of its paternal and maternity leave policy, providing full-time hourly employees with 6 weeks of paid paternal leave and 10 weeks of paid maternity leave.