McDonald's is raising its hourly wages for its roughly 90,000 U.S. employees -- joining the trend in rising salaries in the American labor market.

Beginning July 1^st, the Oak-Brook Illinois-based company will pay its employees - at all levels of experience and rank -- USD$1 an hour more than the local minimum wage plus other benefits.  This brings the average hourly rate of its U.S. employees at USD$9.90 from its current USD$9.10.  Employees are expected to receive USD$10 an hour by the end of 2016.

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McDonald's CEO Steve Easterbrook said the pay raise was an answer to workers' survey as the company aims to improve its business. 

"We know that a motivated workforce leads to better customer service so we believe this initial step not only benefits our employees," Easterbrook said. "It will improve the McDonald's restaurant experience," he added.

But the pay raise wasn't all good news as it is only applicable to employees of its 1,500 company-owned restaurants, which is roughly only 10 percent of its 14,350 U.S. stores.  Workers at franchise-owned branches, which make up the bulk of McDonald's workforce, are not covered by the wage increase.

However, some 750,000 McDonald's employees working in franchise-owned branches will still get the benefits and perks that come with the package of the hourly rate increase.  

The company's new offerings include an annual paid five-day time off for its employees.  The fast food giant has also offered to shoulder the cost of classes required for its employees to get a high school diploma.

McDonald's said it would also grant their employees tuition assistance and college credits, as well as expansion of their free English classes for non-English speaking workers. 

The wage increase and new benefits followed similar moves by other U.S. retail giants including Wal-Mart and T.J. Maxx, which had resulted in an intense public pressure over income inequality.

But some labor organizers are still unhappy with the raise, saying it is not enough.

At least one McDonald's worker, Kwanza Brooks, from Charlotte, North Carolina said, "This is too little to make a real difference, and covers only a fraction of workers."

Labor groups have been vocal in their criticism of poor wage conditions at McDonald's and other fast-food chains.  They even launched the "Fight for $15" campaign that seeks to raise hourly rates at USD$15. 

"There's still millions of families in poverty due to McDonald's not raising to $15," said Kendall Fells, the campaign's organizing director. "We're going to show McDonald's this movement won't stop until we get what we deserve," Fells added.

Protests are scheduled for April 15, where demonstrators are expected to gather in front of McDonald's stores to denounce the measly pay increase.

TagsMcdonalds, wage increase, hourly rate, fast-food chain, Steve Easterbrook