The idea was conceived when Dan Price, the founder of Gravity Payments, read an article that claimed income directly affected one's emotional health, to a certain extent and that for people who earned less than 70,000 dollars, a little extra money made a big difference in their lives.
Price, then, surprised his 120-person staff on Monday afternoon by saying that he had decided to raise the minimum wage of even the lowest-paid clerk, customer service representative and salesman to a minimum of 70,000 dollars, reported The New York Times.
"As much as I'm a capitalist, there is nothing in the market that is making me do it," Price said.
However, Price will have to cut down his nearly one million dollar salary to 70,000 dollars and use about 80 percent of the anticipated profit to raise the income of at least 70 employees.
The announcement was followed by claps and cheers by the workers.
An employee who earned 45,000 dollars a year at the firm said that he was "completely blown away" by the announcement.
