Amazon Raising Frontline Wages to Above $19 Per Hour - Modern Distribution Management

Amazon Raising Frontline Wages to Above $19 Per Hour

The company previously raised average starting pay to above $18 per hour in 2021.
Associate wearing PPE 4

Amid an international shortage of warehouse labor, a push for unionization efforts within its facilities and the onset of the holiday shopping season, eCommerce giant Amazon is making an investment aimed to boost pay and benefits for its frontline U.S. employees.

The company said Sept. 29 that it is investing nearly $1 billion over the next year to increase average pay for front-line employees in customer fulfillment and transportation from $18 per hour to more than $19 per hour, as of October. Those workers will earn between $16 and $26 per hour depending on their position and location in the U.S.

Amazon had raised its average hourly pay to $18 an hour last year. Amazon’s minimum wage will remain at $15 per hour. 

The company had approximately 1.1 million U.S. employees as of this past February, and over 1.6 million worldwide.

The company also announced additional investments in career development programs that it said brings its total investment in benefits offered to its team to nearly $10 billion in 2022.

One of those investments is a new “Anytime Pay” pay access program that will allow employees to get paid more than once or twice a month. Workers will be able to access up to 70% of their eligible earned pay whenever they choose and without fees — essentially allowing them to access their earned pay as often as they like.

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