In addition, Walmart is raising its starting hourly wage to $11.
The retailer's hourly workers now make a starting wage of $9, which is increased to $10 after they complete a training program.
Walmart is likely to save billions of dollars from the new tax law, which slashed the corporate tax rate to 21% from 35%, and the wage hikes will cost the retailer only a fraction of those gains, analysts said.
Walmart has gained 1.16% so far this year.
That year, it raised its minimum wage to $9 an hour but later blamed the investment for slipping profits.
The retailer is also expanding maternity and parental leave benefits, as well as creating a new benefit to assist with adoption expenses.
The company is offering a one-time bonus to all full and part-time employees based on their length of service, rising to $1000 for employees with 20 years of service.
"Today, we are building on investments we've been making in associates, in their wages and skills development", Walmart president and CEO Doug McMillon said in a news release.
Walmart said it will raise the starting wage for its employees, and issue one time bonuses up to $1,000, as a direct result of the new United States tax plan. Hourly workers will be paid between $11 and $24.70 an hour. The company said its new wage hike will be effective for the February 17 pay cycle.
Walmart employs about 2.2m people globally, with more than 1.5m in the United States, and had total global revenue of almost $500 billion past year. The one-time bonus will amount to $400m in the current fiscal year.
The company is also giving full-time mothers 10-weeks of paid maternity leave and fathers six-weeks of paid parental leave.
The firm's initial post-tax-reform announcement differs from that of competitor Target Corp., which said Tuesday that it would deploy additional cash flow from the tax law to "long-standing capital deployment priorities, including capital investments, dividends and additional share repurchase". Salaries associates will also receive six weeks of paid paternal leave.