Walmart raises average wage pay to $17.50 amid inflation
- ByStartupStory | January 25, 2023
Following a spike in inflation last year, Walmart Inc., the largest private-sector employer in the United States, is raising wages for a portion of its workforce.
According to John Furner, the company’s head of US operations, the move will raise Walmart’s average hourly wage to more than $17.50. The new average is approximately 2.9% higher than the previous average and 6.7% higher than the level disclosed in September 2021. Consumer prices in the United States increased 6.5% year on year in December.
Higher wages will “ensure we have attractive pay in the markets we operate,” Furner said in a message to employees. Walmart’s minimum starting wage will rise to at least $14 per hour, up from $12 previously, according to an email from the company. That’s a 17% increase, and depending on where you live, starting pay for new employees can be as high as $19.
In recent years, as competition for employees has increased, Walmart has increased wages and benefits, defying previous efforts to keep pay low. While Walmart’s wage rates typically outperform those of discounters such as Dollar General Corp. and Dollar Tree Inc., its hourly worker compensation frequently lags behind that of competitors such as Target Corp., Costco Wholesale Corp., and Amazon.com Inc.
In New York trading, Walmart shares were little changed. In 2023, the stock gained less than 1%, while the S&P 500 gained approximately 4.5%.
Walmart wages will rise as a result of regular annual raises and “targeted investments in starting rates for thousands of stores.” “Furner stated. The pay increase will be reflected in paychecks issued on March 2.
According to Furner, Walmart is creating new, higher-paying team leader positions at its auto-service centres. The company is elevating tech positions at the centres to a higher pay scale “that reflects the special skills needed for the role and its importance to our business.”
Walmart is also adding new college degrees and certificates to its tuition reimbursement programme for employees. The retailer announced earlier this month that it was expanding an initiative to train supply-chain associates as truck drivers, with earnings of up to $110,000 in their first year.
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