Meeting the goal it set for 2020, Target announced on Wednesday that it would be raising its minimum wage company-wide to $15 per hour from $13. The increase will go into effect on July 5 for around 275,000 store and warehouse employees. Employees in major cities like New York and San Francisco already had this minimum wage prior to the announcement.

Target also announced a one-time $200 bonus to be paid out to its full-time and part-time workers by the end of July. This is to thank employees for their work during the coronavirus pandemic, when the chain remained open to sell essential items.

Target currently employs 350,000 workers at its 1,900 locations in the U.S.

This minimum wage increase comes as a culmination of a years-long plan to get the company’s minimum wage to $15, a common amount called for by advocates. The company announced its intention to meet the goal by 2020 in 2017, eventually raising the rate to $13 per hour in 2019 as part of the plan.

Additionally, Target will be introducing new benefits and expanding the availability of benefits introduced in response to the pandemic. This includes care for children or in-need adults, free mental health counseling, and 30-day paid leave for employees at high-risk from the coronavirus. Employees will also be getting free access to virtual doctor’s visits through the end of the year.

The federal minimum wage is currently $7.25 and has not been raised in a decade.

Walmart, which is Target's top competitor, currently offers a $15 minimum wage.

Target Store Georgia and Eastern - Washington, DC
This is a small footprint Target Store at Georgia and Eastern Avenues, NW in Washington, D.C. Silver Spring, Maryland is across Eastern Avenue from the store. Farragutful(CC BY-SA 4.0)