Target is giving thousands of its employees a raise, after announcing Monday that it will begin raising its minimum wage to $11 in October, while committing to increase it further to $15 in 2020, True Pundit reports.
The last time the big-box retailer increased its hourly minimum wage was in in April 2015 to $9, higher than the federal minimum hourly pay rate of $7.25 at the time.
That move was seen as a response to Wal-Mart’s decision to lift its base pay to $10 per hour by 2016.
The latest $11 wage is higher than the minimum wage in 48 states, and is similar to the pay rates in Washington and Massachusetts, according to Target.
Target is also confident that the move will not impact the retailer’s bottom line, as it reiterated its third quarter and full year sales and earnings forecast.
The increase will also apply to the company’s over 100,000 hourly workers it is hiring for the holiday shopping season.