Starbucks Corp will increase pay for baristas, shift supervisors and café attendants at its US outlets by at least 10% from 14 December, according to an internal memo seen by Reuters.
The world's largest coffee chain will also boost starting pay by 5% in order to help attract and retain employees.
The memo was first reported by Business Insider.
'One Of The Most Substantial Investments'
The increase is "one of the most substantial investments in pay in our company's history", Starbucks president of US retail Rossann Williams wrote in the memo.
Employees with the company for three years or more will get at least an 11% pay increase, and the company will increase the premium it already pays above minimum wage in every market, it said.