CVS Health is preparing to increase its starting wages thanks to the recent Trump tax cuts.
On Thursday the company announced it would not only change its hourly employees’ starting pay from $9 to $11 but that it would roll out other benefits as well.
“As part of our ongoing commitment to the patients, customers and communities we serve, we said that we would invest our tax savings back into our business, and that’s exactly what we’re doing,” said CVS Health President and CEO Larry Merlo.
Other employees and pharmacy technicians will have their pay rates adjusted while premiums for the 100,000 employees enrolled in the company’s health plan will not rise for the year.
Full-time employees will also be offered four weeks of paid parental leave once the new benefits begin.
“Today, we’re building on the investments we’ve been making in our employees, in their wages, benefits and career development,” Merlo added. “It’s our employees who drive our performance and we appreciate how hard they work every day to deliver on our purpose of helping people on their path to better health.”
The changes, set to take place in April, were the result of the company receiving a $1.5 billion tax break.
The company’s announcement comes only one day after Chipotle Mexican Grill similarly announced that its employees would receive new benefits due to the Trump tax cuts.
“We have always been proud of our ability to attract and retain top talent who share our passion for cooking delicious food by hand and creating an extraordinary guest experience,” Steve Ells, Chipotle’s chairman and CEO, said in a statement. “We’re giving back to these committed, motivated, and hardworking team members who have made Chipotle what it is today.”
More than 125 other companies have likewise given employees new benefits and bonuses in the wake of the tax law’s passage.
Some of the notable businesses include Disney, AT&T, Comcast, Lowe’s, Starbucks, Home Depot, JP Morgan Chase, Walmart, Wells Fargo, Alaska Airlines, Bank of America, Jet Blue and Southwest Airlines.