Humana will up its minimum wage to $15 an hour and launch its employee incentive program early because of gains under federal tax reform, the Courier Journal reports.
The minimum wage boost will affect full- and part-time employees in the continental U.S. In addition, employees' annual performance-based incentive program, set to take effect in 2019, will roll out this year. Under the program, employees will have a minimum incentive goal of 4 percent of their base salary, with payouts arriving in March 2019.
Humana announced the changes internally Monday, stating, "like many U.S. companies, Humana will begin benefitting [sic] this year from a lower corporate income tax rate. This provides Humana with the opportunity to make an investment in our employees, using the proceeds from tax reform to further the long-term financial health and well-being of our employee population," according to a note obtained by the Courier Journal.
Humana may also use the funds to make investments in health plan member benefits, as well as pass some along to shareholders.
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