US superstore Walmart's Sam's Club announced on Tuesday that it would raise average hourly wages for nearly 100,000 of its workers. The change comes as part of a new employee compensation plan that will come into effect ahead of the holiday season rush.

The club chain, owned by Walmart Inc., said store employees’ starting wages in the US will increase to $16 from $15.

Entry-level workers will see wages start at $16 per hour, an increase from the $15 per hour set three years ago, according to a press release from Walmart, Sam’s Club’s parent company. The company also says wage increases will rise between 3% and 6% based on seniority so workers can gain maximum compensation quicker.

In a strategic move to address the ongoing challenges of employee retention in a competitive labor market, Sam’s Club has announced a significant overhaul of its compensation policies. The retail giant is not only increasing starting wages for hourly workers but also introducing a new comprehensive compensation plan designed to provide greater financial predictability and

Sam's Club said the new pay plan gives employees a predictable roadmap of pay increase milestones and a "longer-term perspective" on how they're balancing their personal financial