Walmart raises its minimum wage to $11, hands out bonuses to hourly workers

It's also dishing out bonuses of up to $1,000 to its hourly workers.

What's happening?

Walmart is raising its starting wage for hourly workers to $11 starting in February.

According to CNBC, Walmart's current starting wage is $9, though it jumps to $10 after the completion of training.

The retailer will also be expanding maternity and parental leave benefits, give parents who are adopting a child $5,000 to cover expenses, and providing a one-off cash bonus of up to $1,000 to eligible hourly workers.

This will come as a boost to the 21,500-plus workers Walmart currently employs in Minnesota at both Walmart and Sam's Club stores, of which about a third can expect raises.

How will the bonuses break down?

The bonus amount will depend on years of service. And to get the full amount you'll need to have worked there a looong time.

– $1,000 for 20 years of service

– $750 for 15-19 years of service

– $400 for 10-14 years of service

– $300 for 5-9 years of service

– $250 for 2-4 years of service

Walmart says the one-off bonuses will cost it $400 million, and will one million hourly workers, it works out at roughly $400 per worker.

Why is Walmart doing this?

Walmart says it is able to increase its wages because of the tax bill passed by Congress in December, which cuts corporate taxes from 35 to 21 percent.

The increase in wages will add an extra $300 million to its annual costs.


We asked MN's Fortune 500 companies what they'll do with corporate tax cut savings

Walmart says it expects to make additional investments in its business once the full effects of the tax changes are known – which could include lowering prices for customers.

It follows the lead of other major companies such as AT&T, Wells Fargo and U.S. Bank in announcing bonuses for workers following the passage of the tax bill.

However in AT&T's case, the bonuses handed out to 200,000 workers came at the same time it cut thousands of jobs across the country, the IndyStar reports.

But wait, hasn't Target already done this?

Yes, and they didn't wait for a tax cut to do it.

Target raised its hourly wage to $11 this past October, and announced it is aiming to have a $15-an-hour base wage by 2020.

That said, Walmart employs a significantly larger amount of people – 2.1 million worldwide and 1.4 million in the U.S. alone. Its increase in hourly wage is expected to benefit more than a million workers.

Target on the other hand employs around 323,000 workers, according to its website.

Next Up

Screen Shot 2021-04-09 at 4.48.00 PM

Hennepin Co. medical examiner: Police interaction tipped Floyd 'over the edge'

Medical Examiner Dr. Andrew Baker, who performed Floyd's autopsy, testified Friday in the trial of former MPD officer Derek Chauvin.


Attention, CNN: There will be extra tornado sirens in Minnesota next week

The national broadcaster was caught by surprise by the test this past Wednesday.

Screen Shot 2021-04-09 at 11.41.46 AM

Minneapolis Parks and Rec buys land to create park in North Loop

The Parks and Recreation Board is paying just over $2M for the land.

traffic stop

Speed-related crashes, deaths are a mounting problem in Minnesota

Fatal speed-related crashes are ahead of last year's pace.

Parkway Minneapolis lake path

Sections of Minneapolis parkways to close to vehicles till end of May

They will be designated for pedestrian and biker use only.

covid-19, coronavirus

Here is Minnesota's COVID-19 update for Friday, April 9

Hospitalizations have more than doubled in the past month.

covid, vaccine

Minnesota's 9th community vaccine site opening in Lino Lakes

All Minnesotans age 16 and older can try to get an appointment.


Another Minnesotan arrested in connection with Capitol insurrection

The 26-year-old from Lindstrom is facing federal charges.

Screen Shot 2021-04-09 at 6.57.05 AM

Minneapolis woman missing from Eden Prairie is found safe

Eden Prairie PD had issued an appeal to find Suzanne Merkl.


Screen Shot 2019-04-04 at 7.25.36 AM

Target's minimum wage workers will get another pay bump

The Bullseye is increasing its minimum to $13-an-hour.

Target raises hourly minimum wage to $12

It's only been six months since Target last hiked hourly wages.

Target store

Target raises its minimum wage to $15 ahead of schedule

Target originally set out to get to $15 an hour by the end of 2020.


Walmart announces it will not open on Thanksgiving Day

The company has also announced another round of bonuses for its hourly workers.

Baggage airport

MSP Airport operators to consider raising minimum wage

There will be a public hearing on Monday evening.

Amazon increases minimum wage for its U.S. workers to $15

The retail giant employs thousands of people in Minnesota.