Volkswagen Chattanooga is raising the minimum wage to $16.

The announcement was made during an employee meeting Wednesday.

The increase will go into effect on July 1.

"New hires will begin at $16 with a top-out of $23.50," a VW spokesperson explained. Production wage progression will increase $.50 at every level."

Once an employee has been with VW for six months, they will be eligible to make $17 an hour. Then, after two years with the automaker, employees can make $19.70 an hour.

“We are dedicated to building quality careers in Chattanooga and want to be on the forefront of compensation and benefits in our region,” said Antonio Pinto, Volkswagen Chattanooga president and CEO. “This increase is a reinforcement of our team’s efforts and, we hope, helpful in recruiting new team members as we continue to grow here in Tennessee.”

VW says team members will continue to receive benefits like:

  • Comprehensive healthcare including medical, dental and vision coverage
  • New parent leave, both maternal and paternal
  • 401k matching
  • Employee and family vehicle lease program
  • Tuition reimbursement

For more information about working at Volkswagen Chattanooga, visit their website.