Walmart on Wednesday announced its plan to increase its minimum wages for all full-time and part-time associates this February under the second phase of the company’s two-year, $2.7 billion investment in employees.
More than 1.2 million workers at Walmart and its subsidiary Sam's Club will see a pay bump on Feb. 20, in line with company’s promise to bring its minimum hourly wage up to $10 this year.
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“We live in a changing world and to grow and succeed as associates and as a company requires new skills and the ability to meet the needs of customers with the world at their fingertips,” said Erica Jones, Walmart’s senior manager of communications. “Helping associates succeed helps Walmart do the same.”
In addition to the pay increases, Walmart also announced a new paid time-off policy, allowing vacation days to be taken immediately as they're earned and eliminating a previous requirement that employees wait one day before taking sick time. In addition, new short- and long-term disability plan will also take effect this year at no cost to full-time hourly employees.
The changes taking effect include:
- All associates hired before Jan. 1, 2016, will earn at least $10 per hour.
- Associates already earning more than $10/hour will receive an annual pay increase in February rather than having to wait until their anniversary date.
- As Walmart raises the starting rate of its non-entry level hourly pay bands, anyone earning below the new minimum will automatically move up to the new minimum.
- Associates at or above their pay band maximum will receive a one-time lump sum payment equal to 2% of their annual pay.
After these pay scale changes go into effect, Walmart’s average full-time hourly wage will be $13.38 per hour and the average part-time hourly wage will be $10.58 per hour.
“Walmart is simplifying its business and simplifying the way our people work,” Jones added. “We are creating clearer career paths so associates can see how their hard work combined with our new skill training and education opportunities can help move workers into jobs with more responsibility and higher pay.”
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Entry-level workers, however, will still receive $9 an hour until completing an in-house training program. The average full-time hourly wage will become $13.38.
“We are committed to investing in our associates and to continuing to simplify our business. When we do so, there is no limit to what our associates can accomplish,” said Judith McKenna, chief operating officer for Walmart U.S. “We’re seeing strong increases in both customer experience and associate engagement scores.”
