Walmart will join the growing list of major companies changing their compensation structure thanks to the new tax reform bill.
The company, which operates a store in Tullytown’s Levittown section, announced they will increase the starting wage rate for all hourly associates in the U.S. to $11, provide a one-time cash bonus to eligible employees of up to $1,000 and expand maternity and parental leave benefits.
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The store in Levittown employs about 200 people, a company officials has said in the past.
The wage increase to workers will happen after the start of the company’s new fiscal year begins in February and is a one-time only bonus.
The company said in a statement provided to LevittownNow.com that the bonus will be based on how long an employee has been with the company, noting a 20-year employee will qualify for the full $1,000 bonus. The retailer plans to spend a one-time amount of $400 million on the bonuses and $300 million on the wage increase.
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Walmart admits the new tax bill, which will cut taxes for corporations and for most Americans starting in 2018, will benefit the Arkansas-based retailer.
“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 shareholder,” said Doug McMillon, Walmart president and CEO.
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The company has more than 11,000 stores around the globe and employs about 2 million people in the United States.
Walmart previously operated a store in Bristol Borough but shuttered that location at the end of 2017. Company officials said the closure of the location was based on a number of factors, including financial performance and strategic alignment with long-term plans.
Walmart has long been knocked for low wages paid to many employees. In recent years, the company has made small steps to improve pay for its lowest earning workers, according to the Los Angles Times.
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The tax plan will benefit businesses and most taxpayers, but there is some controversy because estimates project taxes may rise for many people in the next decade under the plan. The tax reform legislation is also projected by groups on the left and right to increase the national debt. However, other large companies, including Comcast and AT&T, have announced one-time bonuses due to the tax bill passing.
