Clothing chain Gap will raise the hourly pay for U.S. employees to $9 in June 2014 and then to $10 in June 2015.
This comes after the White House raised the minimum wage for federal contract workers to $10.10 an hour.
Gap owns Old Navy, Banana Republic, and Gap apparel chains. The increased pay will benefit about 65,000 employees.
Walmart said it remains "neutral" on the issue.
Copyright 2015 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.