Amazon has announced a raise in the minimum starting pay for its US core operations workers, such as delivery drivers and fulfillment centre employees, to $20 per hour. This adjustment means eligible employees will receive an additional $1 per hour. The average hourly pay for these roles is now set to be nearly $24 per hour.
According to Amazon Senior Vice President Udit Madan, the average total compensation, when including benefits, amounts to more than $32 per hour. The company's investment in these pay increases exceeds $1.5 billion, which represents approximately 0.06% of its $2.68 trillion market capitalisation.
In addition to the pay rise, Amazon is introducing new benefits for employees. These include access to a low-cost banking system called Day 1 Financial, membership in First Tech Federal Credit Union, and a 20% discount on in-store purchases at Whole Foods Market. Employees ordering groceries online via Amazon will receive a 10% discount. Existing benefits, such as free Prime memberships, prepaid education programmes, and healthcare coverage, will continue.