Walmart is raising wages and issuing bonuses after tax reform

Walmart said it will raise the starting wage for its employees, and issue one time bonuses up to $US1,000, as a direct result of the new US tax plan.

Shares of the retailer are trading 0.36% higher at $US100.03 after the announcement.

Walmart is raising its starting hourly wage to $US11, a move that will cost the company $US300 million in addition to previously planned wage hikes. The company is also issuing bonuses based on seniority that will top out at $US1,000. The bonuses are expected to cost another $US400 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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Walmart stock price