Amazon Raises Warehouse Workers' Wages to $22/Hour, Adds Free Prime Subscription Perk

Amazon has made a significant announcement regarding its warehouse workers and delivery personnel. The company will be raising wages for its hourly warehouse workers and adding a new employee perk that will give them a Prime subscription at no extra cost.

Wage Increase and New Employee Perk

Beginning this month, Amazon will be raising the average starting pay for its front-line employees in the U.S. to over $22 an hour, up from the previous rate of approximately $20.50 an hour. Additionally, Amazon will be including its Prime subscription service as part of the employees’ benefit package starting "early next year." The Prime subscription service, which costs $140 a year, offers members access to fast shipping and video streaming, among other benefits.

Furthermore, Amazon has also raised the wages for its contracted delivery drivers to roughly $22 an hour as part of a $2.1 billion investment this year into its third-party logistics program. This move indicates Amazon's commitment to improving the working conditions and benefits for its employees.

Preparation for Peak Holiday Shopping Season

The wage hikes come at a crucial time as Amazon is preparing to enter the peak holiday shopping season, which is a period when retailers typically experience a surge in online shopping. Additionally, the company has announced plans to host a second Prime Day-like promotional event on October 8-9, marking the third consecutive year for this discount event.

These measures taken by Amazon demonstrate its efforts to enhance the compensation and benefits for its warehouse workers and delivery personnel, while also gearing up for the upcoming holiday shopping season with strategic promotional events.