Amazon Increases Minimum Starting Pay for U.S. Operations Workers to $20 Per Hour
Quick Look
- Amazon is raising the minimum starting wage for U.S. operations staff to $20 per hour and increasing average hourly pay to nearly $24.
- The $1.5 billion investment also includes new banking benefits and expanded discounts at Whole Foods Market.
AI-generated summary
Why It Matters
Amazon employs a large workforce in its fulfillment and delivery operations. The company previously offered benefits such as Prime memberships and education programs.
Amazon is raising the minimum starting pay for its U.S. core operations workers — like delivery drivers and fulfillment center employees — to $20 per hour and its average hourly pay to nearly $24 per hour. The company notes the higher pay represents an increase of $1 per hour for eligible employees.
“When you add in the value of our industry-leading benefits, average total compensation comes to more than $32 per hour,” Amazon Senior Vice President Udit Madan wrote in a blog post.
The investment in these raises comes out to over $1.5 billion, or about 0.06% of its $2.68 trillion market cap.
In addition, Amazon says it will now also provide employees with access to a low-cost banking system called Day 1 Financial, a membership in First Tech Federal Credit Union, as well as a 20% discount on purchases bought in-store at Whole Foods Market, the premium grocery chain that Amazon owns. If employees order groceries online via Amazon, they will also get a 10% discount.
Amazon already offers its employees free Prime memberships, prepaid education programs, and healthcare coverage, among its benefits.
Open Questions
- When exactly will the new pay rates take effect?
