UPDATE 1-Gap to raise workers' hourly pay to $10 in 2015

Wed Feb 19, 2014 6:36pm EST

Feb 19 (Reuters) - Apparel retailer Gap Inc said it would raise the hourly pay for its U.S. employees to $9 in June 2014 and $10 in June 2015, after the White House said the minimum wage for federal contract workers would be raised to $10.10 an hour.

U.S. President Barack Obama signed an executive order last week to raise the minimum wage for federal contract workers to $10.10 an hour starting Jan. 1, 2015 and encouraged employers nationwide to increase wages for their workers.

Gap, owner of Old Navy, Banana Republic and Gap apparel chains, said the increased pay will benefit about 65,000 store employees.

Wal-Mart Stores Inc, the largest private employer in the United States, said on Wednesday it was "looking at supporting" an increase in the federal minimum wage, Bloomberg reported, citing a company spokesman. ()

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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