Companies promise raises, bonuses to employees in response to newly passed tax legislation

Posted at 8:56 PM, Dec 20, 2017
and last updated 2017-12-20 21:02:34-05

INDIANAPOLIS – In response to the newly passed tax legislation, several national corporations are raising minimum wages and offering bonuses to their employees.

Fifth Third Bankcorp announced plans Wednesday to raise their minimum hourly wage for all employees to $15 per hour and give a one-time $1,000 bonus to more than 13,500 employees.

“We want to invest in our most important asset – our people,” said Fifth Third President and CEO Greg Carmichael. “Our employees drive our reputation, our business and our success.”

READ | Senate passes GOP tax legislation on narrow party-line vote

According to a release sent out by the company on Wednesday, about 75 percent of employees will receive a pay increase or bonus. Nearly 3,000 hourly employees are expected to see a pay increase and the one-time $1,000 bonuses are expected to be distributed by the end of the year if the bill is signed by President Trump before Christmas. Senior managers and executive leadership will not receive compensation. 

Carmichael says the new tax plan includes a reduction in corporate tax rates, which will allow Fifth Third Bank to reevaluate its pay structure and share the benefits with its workforce.  

READ | House Republicans to vote again on tax bill, celebrate with Trump

Fifth Third Bank employees roughly 1,000 Hoosiers and more than 13,000 people nationwide.

AT&T also announced Wednesday that they would be paying a “special $1,000 bonus” to more than 200,000 U.S. employees due to the passage of the tax reform. The company also plans to increase their U.S. capital spending by $1 billion.

AT&T employs more than 4,500 Hoosiers.

READ | AT&T promises $1,000 bonus to workers after tax overhaul

Comcast joined the trend Wednesday afternoon, announcing they, too, would offer $1,000 bonuses to more than 100,000 eligible employees. The company also plans to invest more than $50 billion in the next five years on infrastructure to improve their broadband plant and capacity.

Boeing and Wells Fargo have also promised to raise wages and offer bonuses to their employees and future investments once the tax bill is signed into law. 

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