H-E-B announces largest wage increase in company history amid coronavirus pandemic

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A new H-E-B store opened on South Congress, near the intersection Slaughter Lane and I-35, Wednesday. (KXAN photo/Todd Bailey)

Editor’s Note: This story has been updated to reflect H-E-B is transitioning from its temporary “Texas Proud Pay” increases to a more permanent pay increase.

AUSTIN (KXAN) — H-E-B announced Monday it will be permanently increasing pay for its store and supply chain hourly workers, after it ended its temporary “Texas Proud Pay” raises enacted during the coronavirus pandemic. The company says the wage increase will be the largest in company history.

H-E-B did not specify what the new “long-term, permanent investments in our people, which include accelerated and enhanced pay increases for store and supply chain hourly Partners,” will look like exactly. However, a spokeswoman told KXAN the new pay plan will be tailored to each of its more than 120,000 employees “with accelerated and enhanced permanent pay increases worth more than twice the amount of the temporary program for the average Partner over one year, and considerably more over their careers.”

The $2/hour “Texas Proud Pay” raises were temporary increases as employees worked through the COVID-19 pandemic, but the company said in a press release that it believes “this crisis will be around for an indeterminate amount of time and our goal is to reward our Partners for their hard work and dedication with more than temporary bonuses.”

The Texas Proud Pay raises were extended three times since the pandemic began in March. H-E-B also says the majority of its employees earn paid time off and sick leave, and if someone is diagnosed with coronavirus, they will still be paid.

The company also announced it would make Martin Luther King Jr. Day a paid holiday.

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