McDonalds has said that it will raise the pay of over 90,000 workers in the US to above the legal minimum, following moves by American supermarket chain Wal-Mart.
The rate is short of that demanded by campaigners, who have been asking for the minimum wage itself to be raised to $15 per hour from the current $7.25 (£4.90) an hour.
The move will benefit staff in about 14,000 US restaurants.
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