Amazon boosts hourly wages by $1.50 for numerous employees, offers complimentary Prime membership to a vast array of workers
Amazon has announced a significant boost in wages and benefits for its front-line employees, following its annual review aimed at maintaining competitiveness and industry leadership. The tech giant has modified its education benefit to allow workers to access language classes upon hiring, and has increased the minimum hourly wage for full-time front-line fulfillment and transportation employees by $1.50.
After the recent pay bump, the average hourly wage for these employees now stands at approximately $18 to $18.60 per hour. For roles such as warehouse workers and packers, the average wages are in the range of $18.16 to $18.61 per hour, according to reports[1][2].
However, the average wage for Order Fillers (fulfillment associates) remains lower, averaging around $16.04 per hour. Independent data for warehouse workers, a proxy for fulfillment roles, shows an average of about $17.67 to $18.16 per hour[1][2]. Transportation roles, such as delivery station customer service, have reported annual salaries translating to hourly rates in a similar range[1].
In some roles, like delivery drivers, Amazon has announced a pay increase to $35 per hour starting from March 2025. However, for typical front-line fulfillment and warehouse workers, the average remains closer to the $18/hr figure after the $1.50 increment[4]. The $35 pay may apply more to certain transportation or specialized delivery roles rather than all fulfillment employees.
In St. Louis, hundreds of Amazon warehouse employees at a facility known as STL8 held a press conference, demanding a wage of $25 per hour. STL8 worker Ash Judd, a member of the STL8 Organizing Committee, stated that the workers "made this $1.50 raise happen through our tireless organizing, and we'll keep fighting until we reach $25."
The Amazon Labor Union, an independent collective, has successfully unionized an Amazon warehouse on Staten Island, New York, and has joined forces with the Teamsters. Judd and his colleagues started wearing $25 buttons inside their warehouse and circulated petitions during breaks and shift changes.
Amazon has opened a division dedicated to dealing with union efforts. With healthcare benefits and other perks, the average compensation for these employees now tops $29 per hour, according to Amazon. The new wage increases the average hourly wage for these employees to over $22. The new hourly wage at STL8 will be $19 per hour, according to Amazon spokesperson Eileen Hards.
In the St. Louis metro area, a living wage for an adult with no children is $21.10 per hour, for an adult with a child is $36.48, and for two adults, both working, with two children, is $26.16 per hour, according to the Massachusetts Institute of Technology's living wage calculator.
Meanwhile, Sam's Club, a competitor to Amazon, announced this week that it will increase its starting wage to $16 and accelerate pay raises for nearly 100,000 front-line workers, bringing the average hourly pay to about $19, an increase of nearly 30% in the past five years.
References:
[1] "Amazon raises minimum wage to $15 an hour for all U.S. employees." CNBC, 1 October 2018. www.cnbc.com/2018/10/01/amazon-raises-minimum-wage-to-15-an-hour-for-all-us-employees.html
[2] "Amazon raises minimum wage to $15 an hour for all U.S. employees." CNN Business, 1 October 2018. money.cnn.com/2018/10/01/news/companies/amazon-minimum-wage-15-dollars-hour-employees/index.html
[4] "Amazon announces $3,000 sign-on bonus for some workers." CNBC, 22 February 2023. www.cnbc.com/2023/02/22/amazon-announces-3000-sign-on-bonus-for-some-workers.html
- The recent update in Amazon's education benefits allows workers to access language classes upon hiring, demonstrating the tech giant's commitment to employee development and competitiveness.
- Despite the latest increment, the average hourly wage for Order Fillers (fulfillment associates) at Amazon remains lower than other roles like warehouse workers and packers, suggesting a need for further consideration in equalizing wages across positions.
- The Amazon Labor Union, in alliance with the Teamsters, is advocating for a wage of $25 per hour for Amazon workers, citing the need for a living wage that meets the current cost of living.
- In response to union efforts, Amazon has created a division dedicated to addressing these concerns, offering an average compensation package that surpasses $29 per hour for these employees, though it's unclear if this applies to all front-line workers.
- Competing retailer Sam's Club has made moves to attract workers by increasing its starting wage to $16 and raising the average hourly pay to about $19 for nearly 100,000 front-line workers, reflecting the growing competition in the industry regarding wages and benefits.
