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CVS plans to lift its minimum wage to $15

Pharmacy retail giant to hike hourly pay in increments through next summer

Russell Redman

August 5, 2021

2 Min Read
CVS_Pharmacy_store-exterior_1.jpg
CVS Health said the increase to $15 per hour next year will mark a more than 60% gain in its minimum enterprise hourly wage over four years.CVS Health

CVS Health aims to gradually raise its minimum wage to reach $15 an hour in July 2022.

Plans call for Woonsocket, R.I.-based CVS to initiate incremental increases to its hourly pay rates starting this month. In announcing the wage hike yesterday, the pharmacy giant said about 65% of hourly employees already make more than $15 an hour.

“Attracting and retaining top talent across our businesses is critical as we continue to redefine what it means to meet people's health needs,” CVS Health President and CEO Karen Lynch said in a statement on Wednesday. “These wage increases will have a meaningful impact on our colleagues and their families while helping the communities we serve prosper. Today’s announcement is the latest in a series of investments in our people, including bonuses and benefit enhancements throughout the pandemic.”

CVS noted that the shift to $15 per hour next year will represent a more than 60% gain in its minimum enterprise hourly wage over a four-year period. The new wage structure also includes increases over the enterprise minimum, with positions such as pharmacy technicians and call center representatives receiving higher starting hourly rates, the company said.

“With millions of visits per day to our nearly 10,000 locations across the country, our retail business plays an important role in how we deliver care,” CVS Health Chief People Officer Laurie Havanec stated. “Our track record on wages aligns with the evolving needs and expectations of CVS Health colleagues in customer-facing roles.”

Related:Lidl to enact $15 starting hourly wage in Philadelphia

Amid the COVID-19 pandemic’s economic fallout, which has led to a labor shortage in areas across the country, retailers have lifted wages, sweetened benefits and offered perks like starting bonuses and appreciation pay to draw prospective employees and retain current workers. Some big players previously had been investing in wages as well.

In the grocery retail arena, companies that have raised or plan to increase their starting hourly wage to $15 or more include Amazon/Whole Foods Market, Target and Costco Wholesale. Walmart said in mid-February that wage investments will lift its average hourly pay to over $15, while Kroger reported in its fiscal 2020 earnings call that its average hourly wage rose to $15.50 from $15 last year and, including full benefits, climbs to over $20. Lidl US also has raised its hourly wage to $15 or more in some markets, including the Philadelphia and Atlanta areas as well as Long Island, N.Y.

The United States hasn’t raised the $7.25-per-hour federal minimum wage since 2009. The Biden administration and congressional Democrats planned an increase to $15 as part of a $1.9 trillion COVID-19 stimulus bill, but the effort was scuttled by the Senate parliamentarian. Currently, 30 states had laws setting the minimum wage above $7.25 as of Jan. 1, according to the U.S. Department of Labor.

Related:Target to raise hourly starting wage to $15

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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