Gap Inc. Raises Pay; Will Walmart Follow?

What's Hot


How to Cut the Cable TV Cord in 2017Family

8 Major Freebies and Discounts You Get With Amazon PrimeSave

8 Creative Ways to Clear ClutterAround The House

Study: People Who Curse Are More HonestFamily

This Free Software Brings Old Laptops Back to LifeMore

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 3 Golden Rules of Lending to Friends and FamilyBorrow

6 Reasons Why Savers Are Sexier Than SpendersCredit & Debt

Resolutions 2017: Save More Money Using 5 Simple TricksCredit & Debt

Porta-Potties for Presidential Inauguration Cause a StinkFamily

Protecting Trump Will Cost Taxpayers $35 MillionFamily

7 New Year’s Resolutions to Make With Your KidsFamily

5 New Year’s Resolutions That Will Pay Off 10 Years From NowCollege

10 Tasty Alcohol-Free Drinks That Adults Will LoveFamily

10 Simple Money Moves to Make Before the New YearFamily

Could Your Pet Benefit From Marijuana-Laced Treats?Family

The retailer announced it will pay its employees no less than $10 an hour by next year.

A bump in pay is on the way for Gap employees. Gap Inc. announced that it’s raising its minimum hourly wage to $9 in June and $10 by June 2015.

Gap, which also owns Old Navy, Banana Republic, Piperlime and Athleta, said 65,000 store employees will benefit from the pay raise.

According to Bloomberg, Gap CEO Glenn Murphy said the move is an investment in its employees.

“To us this is not a political issue,” Murphy said. “Our decision to invest in our frontline employees will directly support our business, and is one that we expect to deliver a return many times over.”

The announcement by Gap came on the heels of President Obama’s executive order to raise the minimum wage for federal contract workers to $10.10, from $7.25, next year. Obama praised Gap’s decision.

So, with news about Gap, many are wondering: What will retail behemoth Walmart do?

According to The Wall Street Journal, Walmart, the nation’s largest private employer, says it’s not taking sides in the minimum wage debate. Walmart publicly supported an increase in the minimum wage in 2007. “This time we decided we’re going to stay neutral,” Walmart spokesman David Tovar told the Journal. “Elected officials can have the dialogue and ultimately decide what the right thing is to do about this.”

As we’ve noted before, Walmart employees would gain a lot from higher pay, with little impact on shoppers.

In related news, The New York Times reported that a new study by the nonpartisan Congressional Budget Office found mixed results from raising the federal minimum wage to $10.10 — eliminating 500,000 jobs while raising the pay for 16.5 million Americans and lifting nearly 1 million families out of poverty.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Tax Hacks 2017: Don’t Miss These 16 Often-Overlooked Tax Breaks

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,906 more deals!