Fast Food Chain To Give A Raise to over 90,000 Employees

Following in the recent footsteps of some major retailers, fast food giant McDonald’s announced on Wednesday its plans to increase hourly wages, by more than 10%, for about 90,000 employees.

The news means a starting hourly rate at least $1 above the mandated minimum wage – as set by local law -- beginning July 1, the company said. By the end of 2016, the new average wage for McDonald’s employees is expected to rise to more than $10 an hour.

Currently, the average wage is $9.01, CNNMoney reports.

“There's a catch -- The raise only applies to the 1,500 McDonald's-owned restaurants in the U.S. It doesn't apply to workers at the franchise-owned stores, which make up about 90% of the McDonald's restaurants in the country and the bulk of its workforce,” CNNMoney explains.

It’s a far cry from benefiting all of the chain’s 750,000 employees – but those not part of that small fraction haven’t been left out completely.

CNNMoney reports that some of the new perks that will affect all employees include free high-school completion, financial assistance for college and classes for non-English speakers.

Paid time off, however, will only be offered to those working at company-owned locations. The accrued vacation benefits will start in July and be offered to both full- and part-time employees.

The announcement of the new offerings comes at the heels of minimum wage hikes in 20 states – such as South Dakota, Nebraska and Alabama – and similar moves from other companies.

“In February, Walmart said it would institute a series of pay raises for workers so they will receive at least $9 an hour this month and $10 an hour next year. The parent company of T.J. Maxx, Marshall's and Home Goods made a similar announcement the same month,” details CNNMoney.