Good news for Walmart employees! The company announced on Tuesday it will be raising the average hourly salary for its U.S. workers next month. In an employee memo, it was revealed that workers will be making anywhere between $14 to $19 an hour, which would be a $2 raise from the $12 minimum wage the retail corporation currently has in place.
According to Walmart U.S. chief John Furner, he expects the retailer’s average hourly wage to be more than $17.50, which will reflect in the March 2 paychecks of roughly 340,000 workers from 3,000 stores. The move comes as many low-wage workers are struggling to deal with the growing rise of living and food costs.
Walmart, America’s largest private employer, is offering its workers more:
-Raising its min. wage to $14/hour for store employees
-Its avg. US wage is expected to be over $17.50 by March
-Adding to its college tuition program
-Creating more high-paid jobs at its auto centers pic.twitter.com/Mctj1rP2s9— Morning Brew ☕️ (@MorningBrew) January 24, 2023
Walmart still falls short in contrast to the likes of Target and Amazon, who have reportedly been paying a minimum of $15 an hour to their front-line workers. But given the rate of employment reaching a 5-decade low in retail last month — with dozens of companies having laid off its essential workers — the announcement of a pay increase is valued nonetheless.
With the possibility that the U.S. Federal Reserve could continue raising interest rates, meaning higher costs of foods (including eggs), many are already left wondering whether the pay rise will make any difference if general living expenses continue to inflate.
The note to employees further revealed that Walmart will make “targeted investments in starting rates for thousands of stores, to ensure we have attractive pay in the markets we operate.”
Walmart’s raising its average minimum wage for all hourly workers to at least $14. Still under the $15 paid at competing companies. Kinda silly for ppl to say its a sign of a wage-price spiral. It is not! And honestly, not even enough of a pay hike to keep up with inflation
— Leticia Miranda (@leticia) January 24, 2023
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“At Walmart, we know our people make the difference,” Furner said. “And as you continue to focus on your customers, we’re focused on investing in you – our store associates – through higher wages and new opportunities to gain the skills to serve tomorrow’s customers and grow a career with Walmart.”
The company currently has around 1.7 million employees in the U.S. and 2.3 million globally, according to its website.