BENTONVILLE (KFSM) -- Following the announcement last week that several Walmart stores will close their doors, the company announced on Wednesday (Jan. 20) that more than 1.2 million Walmart and Sam's Club employees will see pay raises starting next month.
The pay increases are part of the second phase of the of the company's two-year plan to invest $2.7 billion in workers, according to a press release. The raises will go into effect Feb. 20, and will raise the average hourly full-time rate to $13.38 an hour.
The changes in pay on Feb. 20 stipulate:
- All associates hired before Jan. 1, 2016 will earn at least $10/hour.
- New entry-level associates will continue to start at $9/hour and move to at least $10/hour after successfully completing the company’s company’s new retail skills and training program known as Pathways.
- Associates already earning more than $10/hour will receive an annual pay increase in February rather than waiting until their anniversary date.
- Walmart is raising the starting rate of its non-entry level hourly pay bands. Anyone earning below the new minimum will automatically move up to the new minimum.
- Associates at or above their pay band maximum will receive a one-time lump sum payment equal to 2 percent of their annual pay.
- When these changes go into effect, Walmart’s average full-time hourly wage will be$13.38/hour. The average part-time hourly wage will be $10.58/hour.
Additionally, Walmart is implementing a new short-term disability and simplified paid time off (PTO) programs to help employees dealing with extended health issues, according to the release. The plan went into effect on Jan. 1. The basic plan will pay 50 percent of a worker’s average weekly wage, up to $200, for up to 26 weeks.