Feb. 20 (Bloomberg) — Even before it comes to a vote, retailers like Gap Inc. and Wal-Mart Stores Inc. are weighing the benefits of a proposed increase in the minimum wage.

Gap, the largest clothing-focused chain in the United States, announced plans to boost the hourly wages of its workers to $10 by next year, getting out ahead of a potential federal increase. The change will affect 65,000 workers, the San Francisco-based company said, drawing praise from President Barack Obama.

Wal-Mart, the biggest private employer in the country, said it's neutral on the issue, though the company is assessing the benefits of a nationwide rise in the minimum wage. While such a move would increase its payroll costs, it also could put more money in the pockets of some its customers, said David Tovar, a spokesman for the Bentonville, Arkansas-based company.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.