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Macy’s to boost hourly minimum wage to $15 by May 2022

NEW YORK — Macy’s Inc. on Monday became the latest retailer to announce plans to boost minimum hourly pay in a bid to attract more talent in a squeezed labor market.

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The department store chain confirmed it will raise its minimum wage for both new and current employees to $15 per hour by May 2022, CNBC reported.

>> Related: Happy holidays: Walmart to bump hourly pay by $1 for 565,000 workers ahead of seasonal surge

According to the company, the minimum wage hike means that Macy’s average base pay will hover around $17 per hour, and total hourly pay will average $20, the network reported.

>> Related: Amazon set to hire another 125,000 with average starting hourly pay of $18

Macy’s also said it would invest to increase compensation and benefits for employees companywide and spend $35 million on a debt-free education benefit program for U.S. workers over the next four years, Reuters reported.

“This program removes a major barrier to accessing education and will help our colleagues to further develop their skills and grow their careers and earning potential,” Danielle Kirgan, Macy’s chief transformation and human resources officer, said in a prepared statement.

>> Related: Costco raises employees’ minimum hourly wage to $17

Target, Walmart, Chipotle and Starbucks already offer similar perks, CNBC reported.

A nationwide labor shortage, fueled by the COVID-19 pandemic, has spurred retailers in 2021 to raise wages and provide more benefits as competition for available workers heightens. Macy’s currently employs about 100,000 people in the United States, Reuters reported.

In September, Amazon.com Inc. said it had increased its average U.S. starting wage to more than $18 an hour, while Walmart Inc. has also touted raises.

>> Related: Hourly pay for Starbucks workers will jump to $15-$23