(Bloomberg) — McDonald's Corp. will raise pay at company- owned locations to at least $1 more than the local minimum wage and begin offering vacation benefits, aiming to gain an edge on rivals in an increasingly competitive labor market.

The move, which takes effect on July 1, will apply to more than 90,000 workers, the Oak Brook, Illinois-based company said Wednesday in a statement. It won't affect the more than 90 percent of restaurants that are run by franchisees. By the end of 2016, the fast-food chain expects workers at company-owned locations to earn more than $10 an hour on average.

McDonald's would join a growing roster of major employers in pledging to hike wages. In recent months, Wal-Mart Stores Inc., Target Corp. and TJX Cos. have all vowed to boost pay to at least $9 an hour this year. The companies are working to better retain workers and boost productivity.

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