Target currently pays $15 per hour to new employees, which in some locations is a little more than double the federal minimum wage. But, it’s about to get a lot higher. Target announced on Monday that it will spend an extra $300 million in 2022 to attract and retain workers. This investment includes raising starting pay for workers in stores and distribution centers to $24 an hour in some areas – Wall Street Journal. The company also discussed plans to provide more workers who are eligible for health benefits. Currently eligible employees have to work 30 hours work a week to qualify for benefits, but that will change to 25 starting in April.
Target didn’t discuss how it plans to pay the highest starting wage, but it said it’s goal is to be “a wage leader in every market where it operates.” In 2017, Target led the way among major retailers when it revealed that it would raise its starting wage to $15 by 2020. Target’s business rivals include Costco, Best Buy, and Amazon which have starting wages of $15 an hour or more. Walmart however continues to pay a starting wage of only $12 per hour, which went up from $11 in the fall of 2021.