McDonald’s Announces 10 Percent Pay Hike, But There’s A Catch

McDonald's is raising hourly wages for more than 36,500 employees at McDonald’s-owned restaurants by an average of 10 percent. And it's happening just as the broader restaurant industry is facing a labor crunch with fewer people returning to the workforce than expected.

According to a press release, McDonald's raise will be rolled out over the next several months and include shifting the entry level range for crew to at least $11 - $17 an hour, and the starting range for shift managers to at least $15 - $20 an hour based on restaurant location.

Joe Erlinger, President McDonald’s USA said, “Our first value is taking care of our people, and today we are rewarding our hardworking employees in McDonald-owned restaurants for serving our communities. These actions further our commitment to offering one of the leading pay and benefits packages in the industry.”

The increases announced come in addition to the competitive benefits package offered to eligible employees in McDonald’s-owned restaurants including "paid time off to recharge, serving up brighter futures through access to education, employee assistance in times of need and planning for the future," per a McDonald's blog post.

It's worth mentioning that these increases will not directly impact workers who are employed by restaurants owned by McDonald’s franchisees. As CNBC points out, the fast-food giant franchises 95% of its U.S. restaurants.