Global payment network company Visa said Monday it will strengthen contributions to employees' 401(k) savings plans, as a result of the recently passed Republican tax law.
"Tax reform in the United States will strengthen Visa's competitive position globally and create new opportunities for Visa to invest in our business," the company said in a statement. "With the additional 401(k) match, Visa's U.S. employees will enjoy a sustained benefit, consistent with the role they will play in building our business."
The company said it will increase its 401(k) contribution to 10 percent of base salary. In other words, an employee who earns $100,000 a year can set aside $5,000 and the company will contribute $10,000. Visa's longstanding policy has been to contribute $2 for every $1 an employee contributes. Employees can now contribute up to 5 percent of base pay, up from 3 percent.