Walmart ends quarterly bonuses as it increases employee hourly wages
Florida, Miami, Walmart Discount Department Store, check out lines.
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Walmart will end the quarterly bonuses as hourly wages for store workers and other workers increase.
A company spokeswoman confirmed on Thursday that the big box retailer is canceling the additional pay as of January 31, 2022 and including it in the basic pay of workers. The bonuses – distributed four times a year – have been paid out for decades.
Walmart spokeswoman Anne Hatfield said the change will make compensation for employees more consistent and predictable. The development was first reported by the Wall Street Journal.
Walmart announced the pay structure in a memo to employees last week. She declined to provide a copy of the memo as it was an internal communication.
The latest announcement follows another wage change. Walmart announced last week that it would raise the minimum wage to $ 12. It was said that this would mean an hourly increase of at least a dollar for more than 565,000 shop workers.
According to John Furner, CEO of Walmart US, Walmart’s average hourly wage in the US is now $ 16.40
Many companies have raised wages and sweetened perks to attract and retain workers in a competitive job market – but Walmart is lagging behind other retailers like Target and Amazon, who have already increased their starting wages to $ 15 an hour.
Walmart has highlighted other benefits, including a program that covers college tuition and staff textbooks.