McDonald’s (NYSE:MCD) has announced plans to raise minimum wage and increase employees’ benefits on July 1.

McDonald’s said that it will be increasing minimum wage for the average worker to $10 an hour. It’s doing this by increasing starting pay for hourly workers to $1 above the local minimum wage. The company has also announced that it will be offering employees paid vacations, reports Reuters.

While the McDonald’s minimum wage increase will help some, many employees will be left out. The new wages and benefits are only available at the 1,500 stores owned by the fast-food chain. This means that franchised locations won’t be forced to increase wages, Reuters notes.

McDonald’s isn’t the only company looking to raise its minimum wage. Both Target (NYSE:TGT) and Walmart (NYSE:WMT) have also announced plans to increase minim wage for their employees to $9 an hour.

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