Amazon Increases Worker Wages To Make Even Bigger Investment in Its Team

Amazon will increase worker wages and the average total compensation package for fulfillment and transportation employees. The increase will raise their total compensation to over $29 per hour on average.

Udit Madan, vice president of Amazon Worldwide Operations, wrote an open letter to employees about the increase. After visiting a fulfillment site near Salt Lake City, Utah, he made the statement to share this exciting news.

Madan said, “We’re making a significant new investment in pay and benefits for the hourly front-line employees across our fulfillment and transportation network. This is part of an annual process where we review our wages and benefits to ensure that they stay competitive — and in many cases industry-leading — and I’m proud to say that this year is our biggest ever investment in our team.”

“As I told the team this morning, this is just one way to say thank you for all they do,” Maden continued. “That includes making huge progress on safety over the past five years (recordable injuries are down by 28% and lost-time injuries are down by 75% in the U.S.). Helping deliver the fastest-ever speeds for Prime members. And bringing energy and commitment to work each day and supporting each other and our communities throughout the year.”

Starting this month, hourly members of the company’s front-line team will receive an additional $1.50 per hour, bringing their average base pay to over $22 per hour and average total compensation to more than $29 per hour. 

In 2018, Amazon was an industry leader when it increased its starting wage to $15 per hour — more than double the federal minimum wage. The company has continued to increase it each year since then.

Amazon will also continue to offer scheduling flexibility when life happens with Unpaid Personal Time (UPT), which employees accrue. Additionally, the company is implementing a pre-paid education called Career Choice. These include language classes, which can be accessed from the first day of employment.

“We’re making hundreds of changes like that throughout each year — at the individual site level and across our network — based on the feedback we hear from our team. And we’re proud to do it,” Madan stated.