Lowe's to pay US staff $1,000 bonus following tax reform

RetailReuters

Feb 1 (Reuters) - Lowe's (NYSE:LOW) on Thursday said it would pay a one-time bonus of $1,000 for more than 260,000 hourly U.S. employees as the home improvement chain takes advantage of changes in the U.S. tax code.

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The company said it would also give new benefits, including additional paid maternity and parental leave and an adoption assistance benefit of up to $5,000 to qualified hourly full-time employees.

Lowe's expects an additional net tax expense of about $75 million in the fourth quarter of 2017.

The charges and the one-time bonus, which is being paid to store, distribution center and customer and contact support centers, will hit its fourth quarter earnings per share by about 14 cents, Lowe's said.

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Lowe's joins a list of companies that include Home Depot, AT&T, Wells Fargo and Boeing, which have promised more pay for workers since the Republican-controlled U.S. Congress passed the biggest overhaul to the U.S. tax code in 30 years.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber)

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