More Than One Million Walmart Associates Receive Pay Increase in 2016

2016 action lifts average hourly full-time rate to $13.38; New paid
time off plan gives full- and part-time associates greater control

BENTONVILLE, Ark.–(BUSINESS WIRE)–More than 1.2 million Walmart U.S. and Sam’s Club associates will
receive a pay increase under the second phase of the company’s two-year,
$2.7 billion investment in workers. The pay raise, which takes effect
Feb. 20, will be one of the largest single-day, private-sector pay
increases ever. As an industry leader for competitive pay and benefits,
Walmart is also implementing new short-term disability and simplified
paid time off (PTO) programs. The combined changes will expand support
for associates dealing with extended health issues and provide
associates greater control over their paid time away from work.

“We are committed to investing in our associates and to continuing to
simplify our business. When we do so, there is no limit to what our
associates can accomplish,” said Judith McKenna, chief operating officer
for Walmart U.S. “Our customers and associates are noticing a
difference. We’re seeing strong increases in both customer experience
and associate engagement scores. Five straight quarters of positive
comps in our U.S. business is just one example of how helping our
associates grow and succeed helps the company do the same.”

This associate investment was taken into account in the financial
outlook discussed last October at the company’s annual analyst meeting.
Today’s announcement addresses the details for associates. Specifics are
provided below.


A job at Walmart means competitive pay for all associates. Every year,
the company promotes 160,000 associates to jobs with higher pay and more
responsibility and last year Walmart converted more than 150,000
associates from part-time to full-time. On Feb. 20, 2016, the company
will implement one of the largest single-day, private-sector pay
increases ever, benefiting more than 1.1 million hourly associates. The
changes taking effect include:

  • All associates hired before Jan. 1, 2016 will earn at least $10/hour.

    • New entry-level associates hired after Jan. 1 will continue to
      start at $9/hour and will move to at least $10/hour after
      successfully completing the company’s new retail skills and
      training program known as Pathways.
  • Associates already earning more than $10/hour will receive an annual
    pay increase
    in February rather than waiting until their
    anniversary date.
  • Walmart is raising the starting rate of its non-entry level hourly
    pay bands
    . Anyone earning below the new minimum will automatically
    move up to the new minimum.
  • Associates at or above their pay band maximum will receive a one-time lump
    sum payment
    equal to 2 percent of their annual pay.
  • When these changes go into effect, Walmart’s average full-time hourly
    wage will be $13.38/hour. The average part-time hourly wage
    will be $10.58/hour.


Walmart and Sam’s Club are launching a new, simplified PTO policy,
effective March 5, 2016 that will streamline paid vacation, sick time,
personal time and holiday time into one category. And the one-day wait
to use sick time will be eliminated, as promised. When the plan rolls
out in March, both full- and part-time associates will earn PTO based on
tenure and hours worked. The plan includes:

  • No waiting. PTO is available to use as soon as it’s earned and
    can be used for almost any reason.
  • Full-time hourly associates can carry over up to 80 hours (48 hours
    for part time) of PTO from year to year.

    • Any unused hours at the end of the year above the 80 hour and 48
      hour limits will automatically be paid to hourly associates
      in the first paycheck every February.
  • Associates will also keep any existing and accrued sick and
    personal time
    . These balances will be kept separate, to be used
    for certain circumstances once all available PTO is used.


In addition to PTO, Walmart is providing a new, Short Term Disability
Basic plan
at no cost to full-time hourly associates. Effective Jan.
1, 2016, the plan offers more financial protection to workers who need
to be away from work for an extended period of time due to their own
medical needs such as an illness, injury or having a baby. The basic
plan will pay 50 percent of a worker’s average weekly wage, up to $200,
for up to 26 weeks. Walmart is also offering a Short Term Disability
Enhanced plan
, which costs less than the company’s prior voluntary
plan and provides more coverage. Associates would receive up to 60
percent of their average weekly wage with no weekly maximum for up to 26

Walmart’s associate investment is about more than wages and benefits: it
is designed to provide associates the tools they need to grow with the
company and provide great customer service. The company is also creating
new training programs, which will create clear career paths from
entry-level positions to jobs with more responsibility and higher pay.

About Walmart

Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save
money and live better – anytime and anywhere – in retail stores, online,
and through their mobile devices. Each week, nearly 260 million
customers and members visit our more than 11,600 stores under 72 banners
in 28 countries and e-commerce websites in 11 countries. With fiscal
year 2015 revenue of $485.7 billion, Walmart employs approximately 2.2
million associates worldwide. Walmart continues to be a leader in
sustainability, corporate philanthropy and employment opportunity.
Additional information about Walmart can be found by visiting
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Kory Lundberg, 800-331-0085