In expanding its parental in addition to also also maternity leave policy, Walmart will offer full-time hourly employees within the U.S. 10 weeks of paid maternity leave in addition to also also six weeks of paid parental leave. Salaried workers will also receive six weeks of paid parental leave.
Before these improvements, full-time hourly workers were only eligible for up to eight weeks of paid maternity leave in addition to also also two weeks for paid parental leave.
The company is usually also creating a fresh benefit which 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 in addition to also also legal costs. In a blog posted on the company’s website, CEO Doug McMillon said he had received feedback coming from multiple employees who thought the current adoption policy was limited.
“Tax reform gives us the opportunity to be more competitive globally in addition to also also to accelerate plans for the U.S.,” McMillon said in prepared remarks.
“We are early within the stages of assessing the opportunities tax reform creates for us to invest in our customers in addition to also also associates in addition to also also to further strengthen our business, all of which should benefit our shareholders,” he added. “However, some guiding themes are clear in addition to also also consistent with how we’ve been investing — lower prices for customers, better wages in addition to also also training for associates in addition to also also investments within the future of our company, including in technology.”
Walmart said the improvements will benefit the retailer’s more than 1 million hourly employees across the country in addition to also also will go into effect as soon as February. The wage increases in particular are required to add about $300 million in costs to what Walmart was already planning for the coming fiscal year.
Walmart will share more details regarding how the fresh tax law, which slashes the corporate tax rate to 21 percent coming from 35 percent, could impact the company when the idea reports quarterly earnings on Feb. 20.
The news comes after different companies such as Waste Management, Bank of America in addition to also also JetBlue have made similar announcements, handing out bonuses to employees in addition to also also citing the passage of tax legislation.
“Retailers have traditionally paid one of the highest effective corporate tax rates,” Sandy Kennedy, president of the Retail Industry Leaders Association, said at the end of December, when House in addition to also also Senate Republicans finally reached an agreement to resolve the differences between their tax overhaul bills.
“A fairer in addition to also also more competitive tax code will give retailers the ability to modernize stores, invest in their workforce in addition to also also continue to transform the shopping experience for consumers,” Kennedy said.
The wage hike for Walmart follows Target’s move late last year to raise its minimum hourly wage to $11, with plans to pay out $15 by 2020. different retailers including Gap, Whole Foods Costco in addition to also also TJX have also boosted their wages in recent years, as more companies are under pressure to recruit the best talent.
The federal minimum wage, though, hasn’t budged since 2009 in addition to also also still sits at $7.25 per hour. Separately, a slew of states have increased their wage requirements in recent years.