Amazon Increases Average Pay to Over $22 an Hour and Introduces Free Prime Membership for Employees

Amazon Raises Wages with New Employee Benefits

In a significant news announcement, Amazon is increasing its average starting pay for hourly warehouse workers in the U.S. to more than $22 an hour, a notable rise from approximately $20.50 an hour. This increase is set to take effect this month, reflecting Amazon's commitment to enhancing employee compensation.

Introduction of Free Prime Membership

As part of this initiative, Amazon is also introducing a new benefit: a free Prime subscription for its front-line employees, starting early next year. This subscription, which typically costs $140 a year, provides members access to benefits like speedy shipping and video streaming services.

Context of Wage Hikes Amid Peak Shopping Season

This wage increase coincides with Amazon's preparations for the holiday shopping season, a period marked by significant online retail activity. Furthermore, the company recently raised wages for contracted delivery drivers to around $22 an hour as part of a broader $2.1 billion investment in its third-party logistics program, providing even more support to its operational workforce.

In addition, Amazon plans to host another discount event akin to Prime Day on October 8-9, marking the third consecutive year for this shopping initiative.