Walmart has announced an increase to its minimum wage and a series of bonuses in light of the Republican tax bill, but the bulk of its corporate tax cut still won't be trickling down to its workers.
Walmart CEO Doug McMillon on Thursday said a wage hike to $11 an hour would roll out in February and employees this year will be getting one-time bonuses of up to $1,000. Those who have worked for the company for 20 years are eligible for the top-tier bonus, while others will be handed smaller payouts based on their seniority.
Overall, the value of bonuses will be $400 million, but McMillion did not go into specific detail on how the fund would be doled out to the rest of the workers.
The retail chain employs about 2.1 million people worldwide _ an estimated 1.4 million of which are in the U.S _ which means an average bonus works out to be about $190.
"It's our people who make the difference and we appreciate how they work hard to make every day easier for busy families," McMillion said.
"We are in the early stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and further strengthen our business, all of which should benefit our shareholders."
A list compiled by Americans for Tax Reform notes nearly 60 companies have announced bonuses in light of the tax overhaul. Ahead of Walmart's announcement, the total cost of bonuses amounted to only .09 percent of the tax cuts to corporate America over 10 years, Think Progress reported.
Walmart also credited the Republican tax reform for its latest wage hike, though the company announced its intention to raise pay nearly three years ago, according to Bloomberg.
Walmart in 2015 spent $1 billion to lift their pay to $9 an hour, and then boosted it by another dollar the following year _ but only for those employees who complete a 90-day training course.
The pay increase may have also been spurred by competition from other retailers, who have announced similar pay boosts of their own.
Target in September announced plans to raise its minimum wage by 2020 and currently boasts an $11 starting pay. Costco has had a minimum wage of $13.50 as of 2016.
Walmart in 2017 reported pre-tax profits of about $20.5 billion and paid an effective tax rate of around 30 percent. According to Think Progress, under the new corporate tax rate of 21 percent, the corporate tax cut for the super store will be at least $1.85 billion annually and will likely grow over time.
