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Starting July 5, every employee at Target will be making at least $15 per hour, a $2 increase from their current minimum wage of $13. The retailer had made a pledge in 2017 to increase wages to $15 an hour by December 2020, but they’re making the change about 5 months ahead of schedule in an effort to support workers during the coronavirus crisis.
The new $15 minimum wage now puts Target on par with Amazon, which raised its minimum wage to $15 in November 2018. It also puts Target ahead of its biggest rival Walmart, which currently offers a minimum wage of $11 an hour.
In addition to the minimum wage increase, employees will be getting a one-time bonus of $200 in recognition of their essential work during the pandemic. The $200 bonus is on top of separate bonuses of $250 to $1,500 the company gave to 20,000 hourly employees back in April.
Plus, beginning this week, all workers will also get access to free virtual health care visits until the end of the year, regardless of their insurance plans.
All in all, Target is spending nearly $1 billion more this year than it did last year on employee-related expenses. Hopefully, other retailers will follow suit.