Amazon is raising the minimum starting pay for its U.S. core operations workers, including delivery drivers and fulfillment center employees, to $20 per hour and its average hourly pay to nearly $24 per hour, an increase of $1 per hour for eligible employees. Amazon Senior Vice President Udit Madan wrote in a blog post that when the value of the company's industry-leading benefits is added in, average total compensation comes to more than $32 per hour. The raises represent an investment of over $1.5 billion, or about 0.06% of Amazon's $2.68 trillion market cap. Amazon also said it will give employees access to a low-cost banking system called Day 1 Financial, a membership in First Tech Federal Credit Union, a 20% discount on in-store purchases at Whole Foods Market, and a 10% discount on groceries ordered online through Amazon. The company already offers free Prime memberships, prepaid education programs, and healthcare coverage, and workers on an Amazon fulfillment center subreddit responded to the Whole Foods discount with little enthusiasm.
Amazon.com IncAmazon is raising minimum starting pay to $20/hr and average pay to nearly $24/hr, a $1.5B labor-cost increase that pressures margins.
