Walmart to invest $1 billion to increase staff pay

Walmart is to invest $1 billion (£652 million) to increase the hourly pay of more than 500,000 of its 1.4 million workforce.


The US supermarket giant, which is the parent organisation of Asda, pledges to award staff at least $9 (£6) an hour, which is above the US minimum wage of $7.25 (£5) an hour. 

Pay rises are expected to be introduced by April, with all existing employees to be paid at least $10 (£7) an hour by 1 February 2016.

Doug McMillon, president and chief executive officer of Walmart stores, said: “We have announced changes to our hiring, training, compensation and scheduling programmes, as well as to our store management structure.

“These changes will give our US employees the opportunity to earn higher pay and advance in their careers. We’re pushing a comprehensive approach that is sustainable over the long term.

“By realigning our store operational structure, employees can enjoy a closer relationship with supervisors. In addition, employees will have more control over their schedules.

“The investment in these initiatives is more than $1 billion (£652 million) for this fiscal year.”

Walmart employees will receive the pay increase in addition to the healthcare benefits, sick leave, access to bonus incentive opportunities, discounts and educational programmes, that the employer already offers them. 

Last year, Gap and Ikea also increased their minimum hourly rates for US employees.