Walmart (WMT) is putting an end to the long tradition of handing out quarterly bonuses to store workers as it raises its starting hourly wage to $12 per hour.

The retailer said it will roll the MyShare bonuses into employees’ base pay starting at the end of the company’s fiscal year on Jan. 31, 2022, as reported by the Wall Street Journal.

A Walmart spokeswoman told the news outlet that most workers say their hourly wage is the most important part of their pay and rolling the bonuses into their wages helps to increase the amount of consistent, predictable income for them.

She continued by saying that the bonuses only make up a portion of the pay increases that Walmart workers are receiving.

Walmart employees have been receiving bonuses for decades. They have been distributed based on a worker's attendance, or store theft level, with workers not qualifying for bonus pay some quarters, the Journal said.

Walmart will begin paying a starting wage of $12 an hour, up from $11, beginning at the end of September, which it announced last week.

The increase will affect over 565,000 workers and is lower than many of its retail competitors that have raised their hourly wage to $15 an hour, including Target and Amazon.

Walmart does offer its employees a range of perks, including programs for free college education and on-the-job training.

CEO John Furner has said that the average hourly wage at Walmart U.S. is now $16.40, according to CNBC.

As of Thursday at 11:22 a.m. ET, shares of Walmart were trading at $146.68, down 78 cents, or 0.53%.

Walmart reported strong earnings behind higher sales at US stores, with consumers shopping less frequently, but spending more at each visit
Walmart reported strong earnings behind higher sales at US stores, with consumers shopping less frequently, but spending more at each visit AFP / Robyn Beck
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