CVS Health announced on Thursday “three major programs that will enable employees to share in the tax savings” as a result of the Tax Cuts and Jobs Act of 2017, which was signed into law by President Donald Trump in December.
The Rhode Island-based company will increase the starting wage rate for hourly employees to $11 an hour, starting in April 2018. They will also improve pay rates for retail pharmacy technicians, front store associates, and other positions.
America’s 7th largest corporation also announced a new paid parental leave program, which will cover 100 percent of employee salaries for a month.
CVS Health also promised not to increase employee premiums for the 2018-2019 plan year, despite massive increases in recent years.
“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,” CEO Larry Merlo said in the statement. “Today, we’re building on the investments we’ve been making in our employees, in their wages, benefits and career development.”
CVS also announced that their net income rose to $3.29 billion, or $3.22 per share in the fourth quarter of 2017. That is a massive improvement from the fourth quarter of 2016, which was $1.71 billion, or $1.59 per share.
CVS is planning to complete its $69 billion acquisition of Aetna, the nation’s third-largest health insurance company.