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.
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