Walmart is now offering bonuses to its hourly employees in the U.S., the company announced Wednesday.
The retail behemoth said in a press release full- and part-time hourly workers will be eligible for the new bonus, which it says "rewards great work and customer service, and it celebrates long-term associates who build a career."
A worker walks through the aisles in a Walmart Supercenter Feb. 20, 2024, in Hallandale Beach, Fla. (Getty Images / Getty Images)
The longer an associate has been with the company, the higher the associate's bonus potential, to a maximum of $1,000.
"It's important that we are competitive on base wages," Walmart U.S. CEO John Furner told reporters about the move on a press call.
A worker has to be with the company for a year to be eligible for the bonus, which is calculated based on stores achieving certain performance targets, he added.
Walmart is now offering a bonus to hourly employees. (Reuters/Mike Segar/File Photo / Reuters Photos)
The new bonuses are the latest pay boost for Walmart's 700,000 front-line workers, whose average pay has been raised some 30% over the past five years to nearly $18 an hour.
Walmart employs about 1.7 million U.S. workers, a majority of whom staff its 5,000 stores.
Its minimum hourly wage starts from $14, less than the $15 starting wage at Amazon.com and Target. However, starting pay for a Walmart associate can be as high as $19 an hour, depending on the store location.
Earlier this year, Walmart gave its U.S. store managers a raise, lifting their average salary to $128,000 and increasing their annual bonus potential to as high as 200% of their annual salary.
Reuters contributed to this report.