CVS Health announced Thursday it would boost starting wages for employees and increase other benefits, citing tax-reform legislation that gave the company a $1.5 billion tax break.
Effective April 2018, the starting wage for hourly employees will increase to $11 an hour from $9 an hour.
{mosads}
Pay ranges and rates for other employees, including front-of-store associates and retail pharmacy technicians, will also be adjusted later in the year, the company said.
Additionally, CVS Health will not increase premiums for the 100,000 employees participating in the company-sponsored health plan for the 2018-2019 plan year.
The company will also offer four weeks of paid parental leave for full-time employees beginning April 1.
“As part of our ongoing commitment to the patients, customers and communities we serve, we said that we would invest our tax savings back into our business, and that’s exactly what we’re doing,” said Larry Merlo, CVS Health president and CEO.
“Today, we’re building on the investments we’ve been making in our employees, in their wages, benefits and career development. It’s our employees who drive our performance and we appreciate how hard they work every day to deliver on our purpose of helping people on their path to better health.”
CVS estimated the changes would total $425 million annually.
The company also announced Thursday it earned $3.29 billion in the fourth quarter.
Federal regulators are reviewing a $69 billion proposed merger between CVS Health and health insurer Aetna.