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Walmart is raising wages and issuing bonuses after tax reform (WMT)

Seth Archer
Walmart employee

AP



Walmart said it will raise the starting wage for its employees, and issue one time bonuses up to $1,000, as a direct result of the new US tax plan.

Shares of the retailer are trading 0.36% higher at $100.03 after the announcement.

Walmart is raising its starting hourly wage to $11, a move that will cost the company $300 million in addition to previously planned wage hikes. The company is also issuing bonuses based on seniority that will top out at $1,000. The bonuses are expected to cost another $400 million.

Walmart employs 2.3 million people worldwide, according to the company.

Issuing one time bonuses has been a popular response after US President Donald Trump signed his party's new tax plan into law. The new law cuts the corporate tax rate to 21%, down from 35%.

“Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the US,” Doug McMillon, CEO of Walmart, said in a news release.

Walmart has gained 1.16% so far this year.

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