Wal-Mart Raises Hourly Wage to $11 in Wake of Tax Overhaul

  • Largest private U.S. employer to give bonuses of up to $1,000
  • Move comes on same day Wal-Mart closes Sam’s Club locations
Wal-Mart to Increase Starting Wages to $11
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Wal-Mart Stores Inc. is boosting its starting hourly wage to $11 and delivering bonuses to employees, capitalizing on the U.S. tax overhaul to stay competitive in a tightening labor market.

The increase takes effect next month and will cost $300 million on top of annual wage hikes that were already planned, the world’s largest retailer saidBloomberg Terminal Thursday. The one-time bonus of up to $1,000 is based on seniority and will amount to an additional $400 million. The company is also expanding its maternity and parental leave policy and adding an adoption benefit.