UNITED STATES—On Wednesday, June 17, Target announced that it will be raising its minimum wage from $13 an hour to $15 an hour next month.
The increase in minimum wage follows a promise Target made in 2017 to increase the hourly wage of workers from $10 to $15 per hour by the end of 2020. The minimum wage was increased to $13 last June.
“These investments help ensure that team members can build meaningful careers, take care of themselves and their families and contribute to building our communities through their work inside and outside of Target,” said Target Chief Human Resources Officer Melissa Kremer in a statement.
The company stated that this change in minimum wage will give a raise to about 275,000 of its employees. In some cities such as San Francisco and New York City, employees were already payed at least $15 an hour.
The company will also be giving front-line workers a one-time bonus of $200 for working during the coronavirus pandemic.
With these changes, Target will be spending nearly $1 billion more in 2020 than it did last year on employee-related expenses.
During the pandemic, Target extended other benefits to employees, including free backup care for employees’ children or needy adults through August, free mental health counseling, 30-day paid leave for employees at higher risk of coronavirus, and free access to virtual doctor visits through the end of the year.
Target is catching up with other major retailers who have already increased their minimum wage to $15. Amazon changed the minimum wage to $15 per hour 2 years ago, while Costco made the change one year ago.