McDonald's is raising US hourly wages by an average of 10%

(Justin Sullivan/Getty Images)

By Isoken Osagie

McDonald’s will raise its employees' hourly wages for its U.S. company-owned restaurants by an average of 10% as the company seeks to hire 10,000 workers over the next three months.

According to CNBC, the fast-food chain's move comes as the restaurant industry is facing a labor shortage.

Fewer people are returning to the workforce and some maintain it is because workers in these industries aren't being offered a livable wage.

As a result, some companies are adding incentives and increasing pay in hopes of luring workers back. For example, Chipotle Mexican Grill is set to increase its average hourly wage to $15 by the end of June.

Entry-level employees at McDonald's can expect to earn anywhere from $11 to $17 per hour, and shift managers, $15 to $20 per hour, depending on location.

"Together with our franchisees, we face a challenging hiring environment, and staying ahead means we must constantly renew our commitment to offer one of the leading employment packages in the industry," said McDonald’s USA President Joe Erlinger in a message to the U.S. system viewed by CNBC.

Still, the pay hikes will not directly apply to restaurants owned by McDonald’s franchisees and CNBC reports that the fast-food chain franchises 95% of its U.S. restaurant footprint.

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