Trump Tax Cuts To Result In Pay Hike For Walmart Employees

The tax cuts by the Trump administration will benefit the workers of Walmart.

The U.S. based retailing giant, often criticized for its policies toward its employees, is planning to provide a one-off cash bonus to its employees in addition to starting to pay at least $11 an hour to the one million US workers of the company.

This decision was reportedly taken by the company after the Trump administration overhauled the corporate tax rate last month from the earlier rate of 35 per cent to a flat rate of 21 per cent.

The higher rate of hourly payment would be started from next month for the employees who are paid on an hourly basis.

Following the tax cuts announced by the U.S. government, there have bene a number of U.S. corporates who have promised to pass on at least some of the cash that they would save from the reduction in tax rates and Walmart is the latest to join that group of giant corporates. Wage rises or bonuses had earlier been promised by other companies including Wells Fargo and AT&T.

Dependent on the length of service, one-time bonus of up to $1000 would be given to the full and part-time workers at Walmart which is the biggest retailer in the world. The full $1000 cash bonus would be provided to those employees who have rendered over 20 years of service.

A total of abut $400 million would be the cost to Walmart from the bonus payments. The total value of Walmart is $295 billion.

The average hourly pay will now increase from $13.85 to $14.50 for the full-time employees at Walmart. $11 and $24.70 an hour would be the payment for the hourly workers.

“We are early in the stages of assessing the opportunities tax reform creates for us to invest in our customers and associates and to further strengthen our business, all of which should benefit our shareholders,” said Doug McMillon, Walmart chief executive.

“However, some guiding themes are clear and consistent with how we’ve been investing – lower prices for customers, better wages and training for associates and investments in the future of our company, including in technology.

“Tax reform gives us the opportunity to be more competitive globally and to accelerate plans for the US.”

In 2015, the company increased its minimum wage to $9 an hour and the next year there was another increase of $1 rise for those employees who completed an internal training scheme.

(Adapted from


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