Amazon Raises Starting Wages; Minimum Pay Hits $20

Amazon has raised the minimum starting wage for operational employees in the United States, including delivery drivers and fulfilment centre workers, by $1 to $20 per hour. The company said the increase will bring average hourly earnings for employees in these roles to about $24.

In an announcement on Thursday, September 17, Amazon said the total value of employee benefits, including healthcare and education assistance, would exceed $32 per hour when combined with wages and other benefits.

Amazon is investing more than $1.5 billion in the latest wage and benefits programme, aimed at supporting and motivating its frontline workforce. The investment represents a relatively small portion of the company’s reported market value of around $2.68 trillion.

Alongside higher wages, Amazon is introducing Day 1 Financial, a low-cost banking service intended to help employees manage their finances. The company is also offering membership in First Tech Federal Credit Union.

Employees will receive a 20% discount on in-store purchases at Amazon-owned premium grocery chain Whole Foods Market and a 10% discount on online grocery orders. Amazon already provides benefits including free Prime membership, education assistance and healthcare.

The wage and benefits announcement, however, has drawn mixed reactions among Amazon employees. Some workers on online forums have described the $1 hourly increase as insufficient compared with current living costs.

Some employees have also responded critically to the Whole Foods discount. They argue that because Whole Foods products can be more expensive than those at conventional supermarkets, a 20% discount may still leave some purchases at prices comparable to those at other grocery stores.

//DBTech/techcrunch/BMT/IH//