Walmart raises minimum wages, starting with March paychecks
By Tomi Kilgore
Minimum hourly wage is now $14 for store format jobs, $15 for Sam's Club and $16 for fulfillment centers
Walmart Inc. has announced minimum wage increases for hourly employees, ranging from $14 an hour for Supercenter employees to $16 an hour for those working in fulfillment centers.
Walmart (WMT) disclosed its new wages and other benefits in a memo to employees titled, "Continuing to strengthen our jobs and invest in our people."
"[A]s you continue to focus on your customers, we're focused on investing on you -- our store associates -- through higher wages and new opportunities to gain the skills to serve tomorrow's customers and grow a career at Walmart," the memo said.
The company said it expects the wage hikes to lift the U.S. average hourly wage to $17.50. The new wages will be reflected in March 2 paychecks.
Though wage rates are different depending on location and job role, the minimum wage range for roles at Walmart's stores, including Supercenter and Neighborhood Market formats, was raised to $14 to $19 an hour from $12 to $18 an hour. In comparison, Target's (TGT)minimum wage is $15 an hour.
For Sam's Club, which is Walmart's membership-based warehouse format, the minimum wage is $15 an hour. That compares with Costco's (COST)minimum wage is $16 an hour.
And for Walmart's distribution and fulfillment centers, the minimum hourly wage is $16 an hour. Amazon's (AMZN) minimum wage was raised to $15 an hour in 2018.
Walmart also said it was expanding its "Associate-to-Driver" program, to now be available for not just supply-chain employees but also for store employees. The program pays for employees to become truck drivers, who can earn up to $110,000 in their first year.
The company said it's also expanding its "Live Better U" education program by adding new college degrees and certificates. Walmart will pay 100% of tuition and fees for all of its employees to participate in LBU.
Walmart's stock slipped 0.1% in midday trading, but has tacked on 2.2% over the past three months. Meanwhile, Amazon's stock has shed 18.8% the past three months, Target shares have edged up 1.2% and Costco shares have eased 1.8%, while the Dow Jones Industrial Average has advanced 6.8%.
(END) Dow Jones Newswires
January 25, 2023 08:39 ET (13:39 GMT)
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