Amazon raises hourly pay for US operations workers
Amazon is increasing minimum starting pay for its US operations employees by $1 an hour to $20, while adding new banking and shopping perks. The total investment exceeds $1.5 billion.
Amazon announced it is raising the minimum starting hourly pay for its US core operations workers, including delivery drivers and fulfillment center employees, to $20 per hour. The company's average hourly pay will rise to nearly $24, representing a $1 per hour increase for eligible workers.
Amazon Senior Vice President Udit Madan wrote in a blog post that when factoring in the value of the company's benefits, average total compensation exceeds $32 per hour. The total cost of the pay increases comes to more than $1.5 billion, which amounts to roughly 0.06% of Amazon's $2.68 trillion market capitalization.
Additional perks
Alongside the pay raise, Amazon says employees will gain access to a low-cost banking service called Day 1 Financial, membership in First Tech Federal Credit Union, and a 20% discount on in-store purchases at Whole Foods Market, the premium grocery chain Amazon owns. Employees who order groceries online through Amazon will receive a 10% discount.
Amazon already provides employees with free Prime memberships, prepaid education programs, and healthcare coverage as part of its benefits package.
Reaction on a subreddit for Amazon fulfillment center workers was mixed, with some expressing skepticism about the Whole Foods discount's real value, noting the chain's historically higher prices mean the discount may simply bring costs in line with regular grocery stores.
