Walgreens to raise minimum hourly wage to $15
Walgreens is the latest retailer to raise its starting wage as retailers continue to grapple with a labor crunch.
The pharmacy retailer will increase the starting hourly wage for employees to $15.00 an hour. The hike will take effect in phases beginning in October of this year and be fully implemented by Nov. 1.
Walgreens is raising its minimum wage on the heels of recent similar moves from retailers across the board. Walgreens rival CVS Corp. plans to increase its minimum wage to $15 an hour by July 22.
[Read More: CVS Health hiking pay, cuts education requirement for workers]
Walgreens’ total investment to support the starting wage increase is anticipated to be approximately $450 million during the next three years, with one-third of the amount invested in fiscal year 2022. The company anticipates that it will partially absorb the investment through the normal course of business.
“I am extremely proud and grateful of the work our team members are doing across our 9,000 Walgreens locations serving our customers, patients and communities each and every day,” said Roz Brewer, CEO, Walgreens Boots Alliance. “Investing in and rewarding our team members is not only the right thing to do, it’s highly important to retaining and attracting a talented workforce, and to continuing to serve our critical role in community health care.”
Walgreens noted that, since the beginning of the pandemic, it has made additional investments in support of employees, including bonus payments and a significant hiring initiative, through which the company added 25,000 full-time and part-time workers.
Walgreens, the U.S. division of Walgreens Boots Alliance, operates more than 9,000 retail locations across America, Puerto Rico and the U.S. Virgin Islands.
[Read More: Walgreens now delivers 24,000 items in under two hours]