Walmart to raise starting base pay for store managers, redesign bonuses

Walmart store managers will be getting a significant starting pay raise.

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The new starting annual base pay will range from $90,000 to $170,000, up from $65,000 to $170,000, The Associated Press reported.

The average base pay for store managers will increase from $117,000 to $128,000 starting on Feb. 1.

The move is aimed at keeping qualified managers and making sure that hourly employees see that there is a path to higher pay and more responsibility. About 75% of Walmart’s management team started as hourly workers, the company said.

In addition to the rise in the base pay, there will be a new bonus plan where profits will be factored in more to determine a manager’s annual bonus. If they hit all targets, the bonus might be as much as double their base salary. It is currently up to one and a half times base salary.

This is the first change in Walmart’s pay structure for store managers in over a decade, CNN reported.

Hourly workers aren’t forgotten. Walmart said that average wages for hourly workers will be over $18, up from $17.50. The increase takes into account higher-paying positions in Auto Care Centers and other changes, the AP reported.

While managers are getting a raise, Walmart did cut the starting pay for new hires by about $1 last year for people who gather items for online orders for curbside pickup or delivery and for those who restock shelves, CNN reported. Existing employees’ pay did not change.

Walmart has more than 4,700 stores in the U.S. and has about 1.6 million employees.

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