Wal-Mart (NYSE: WMT) employees will soon reap the benefits of the recent U.S. 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. Wal-Mart also will pay a one-time cash bonus to eligible employees of as much as $1,000.
Currently, Wal-Mart's starting wage is $9 U.S. 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.
Wal-Mart said the changes will benefit the retailer's more than one 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, Wal-Mart said, and those workers with more than 20 years of experience will qualify to receive $1,000. For Wal-Mart, the payouts will result in a one-time charge that will be taken in the fourth quarter of the current year.
Shares in the retail giant gave back 74 cents each to $98.93, mid-morning Thursday.
