Wal-Mart Stores Inc. is boosting its startinghourly wage to $11 and delivering bonuses to employees,capitalizing on the U.S. tax overhaul to stay competitive in atightening labor market.

The increase takes effect next month and will cost $300 millionon top of annual wage hikes that were already planned, the world’slargest retailer said Thursday. The one-time bonus of up to $1,000is based on seniority and will amount to an additional $400million. The company is also expanding its maternity and parental leave policy and adding an adoptionbenefit.

Wal-Mart, the nation’s largest private employer, has fought inrecent years to improve its image in the U.S., as it weatheredcriticism over its treatment of employees. With the wageincrease and bonus payment, the company seeks to even its pay gapwith resurgent rival Target Corp., while simultaneously sending ahigh-profile thank you to the U.S. government for slashing thecorporate tax rate.

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