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Target increases minimum wage for workers to $13-an-hour

The retailer has pledged to increase minimum wages to $15 by the end of 2020.

Thousands of Target workers will see their pay increase by another dollar an hour this summer as the retailer increases its minimum wage to $13.

The new wage rate will go into effect this June, becoming the third pay rise Target has implemented in the past two years.

The Minneapolis-based retailer announced in 2017 – when it was paying staff a $10 minimum wage – that it intended to raise its minimum pay $15-an-hour by the end of 2020.

It's now more than half way to reaching that figure, with Target's Chief Human Resources Officer Melissa Kremer saying that "investing in our team members is essential to keep our business growing and thriving."

The current national minimum wage is $7.25-an-hour, while in Minnesota it's $9.86-an-hour.

Among other benefits, Kremer said its higher minimum wage helped it recruit 120,000 seasonal workers well ahead of schedule before the holiday season, when Target was paying staff at least $12-an-hour.

Target's main competitor, Walmart, currently pays its workers $11-an-hour after giving them a pay bump in January 2018.

CNBC notes that Amazon started paying a $15 minimum wage this past November, while another big box retailer, Costco, started paying its staff at least $14-an-hour in June.

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