Walmart to raise its starting wage to $11, give some employees bonuses following tax bill passage

Walmart's employees will soon reap the benefits of the recent tax law changes, as the company raises its starting wage and distributes bonuses to eligible workers.

The big-box retailer announced Thursday it will be increasing its starting wage rate for hourly employees in the U.S. to $11, and is expanding maternity and parental leave benefits. Walmart also will pay a one-time cash bonus to eligible employees of as much as $1,000.

Currently, Walmart's starting wage is $9 until workers complete a training program. Then, they receive $10.

The company is also creating a new benefit that provides financial assistance to its employees who are looking to adopt a child, giving them as much as $5,000 per child to cover expenses such as adoption agency fees, translation fees and legal costs.

"Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the U.S.," CEO Doug McMillon said in a statement.

"We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders," he added. "However, some guiding themes are clear and consistent with how we've been investing — lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology."

Walmart said the changes will benefit the retailer's more than 1 million hourly employees across the country and will take place in February.

The bonuses will be determined on an employee's length of service at the company, Walmart said, and those workers with more than 20 years of experience will qualify to receive $1,000. For Walmart, the payouts will result in a one-time charge that will be taken in the fourth quarter of the current year.

Meanwhile, the company said it's still accessing the new tax legislation and how it will benefit Walmart, which could lead to "potential additional investments."

Walmart will share more details regarding other impacts when it reports quarterly earnings on Feb. 20.

The news comes after other companies such as Waste Management, Bank of America and JetBlue have made similar announcements, handing out bonuses to employees and citing the passage of tax legislation.

"Retailers have traditionally paid one of the highest effective corporate tax rates," Sandy Kennedy, the president of the Retail Industry Leaders Association, said at the end of December, when House and Senate Republicans finally reached an agreement to resolve the differences between their tax overhaul bills.

"A fairer and more competitive tax code will give retailers the ability to modernize stores, invest in their workforce and continue to transform the shopping experience for consumers," Kennedy said.

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