Walmart announced on Thursday that it will raise workers’ wages to an average of more than $ 15 an hour, boosting 425,000 employees.
Walmart said its starting minimum wage for workers would remain at $ 11 an hour. Its workforce in the United States totals about 1.5 million people, making it the largest private employer in the country.
The major retailer made the announcement by reporting its Christmas quarter earnings that fell short of Wall Street expectations, hampered by coronavirus-related expenses and increased e-commerce investments. Walmart also warned that it expects sales growth to moderate this year.
As of March 13, the company said, pay for digital store and inventory employees will rise to $ 13 to $ 19 an hour, depending on the location of the store.
Rivals Amazon and Target made their initial payment of $ 15 an hour, and the Biden government and Congress are considering raising the federal minimum wage by $ 7.25 an hour.
Walmart CEO Doug McMillon, who is also chairman of the influential Business Roundtable, said earlier that the retailer believes the federal minimum wage should be higher – but with “geographical differences”.