Walmart plans to give its one million workers a $1,000 bonus and start paying them at least $11 an hour.
The move by the world’s biggest retailer follows last month’s US tax code overhaul that slashed the corporate rate from 35% to a flat 21%.
Hourly-paid employees will get the higher rate from next month.
Walmart last raised the minimum wage to $9 an hour in 2015 and the following year offered a $1 rise to those who completed an internal training scheme.
The chain also plans to expand maternity and parental leave benefits.