Amazon gives hourly workers pay raise, free Prime membership
Hourly frontline employees at Amazon are receiving higher pay, as well as a couple of new perks.
The company said the more than 800,000 hourly members of its U.S. frontline worker team will be getting at least an additional $1.50/hour starting in September 2024, which will bring their average base wage to more than $22/hour and average total compensation to more than $29/hour including the value of their elected benefits (such as health care eligibility on the first day on the job).
According to Amazon, this represents an increase of $3,000 a year on average for full-time employees who work a 40-hour week. And as one of the largest private employers in the country (it now has more than 800,000 people in these roles across the U.S.), this pay increase equals a total investment of more than $2.2 billion.
In September 2023, the company increased hourly worker pay $20.50 per hour from $19 per hour.
New benefits include free Prime subscription
Amazon is also offering hourly workers a new perk and an expanded benefit. Starting in early 2025, membership in the Prime program, which includes unlimited fast, free delivery of eligible as well as free access to the Prime Video streaming service among many other features, will be offered free of charge to hourly employees.
A standard Prime membership costs $140 per year, although there are some discounted options for specific customer groups such as college students and government benefit recipients, as well as a free 30-day trial period.
Chief Amazon rival Walmart has made its Walmart+ paid membership program available free to all full- and part-time Walmart U.S. associates working in the company’s stores, distribution centers and fulfillment centers since March 2022.
In addition, hourly employees can now enroll in language classes through Amazon’s Career Choice educational benefit from day one.
Amazon invests in contract drivers
Drivers who work with Amazon’s Delivery Service Partners, or DSPs, will earn an average of nearly $22 per hour, a 7% increase from the previous average of $20.50, as a result of an incremental investment of more than $2.1 billion Amazon recently announced it is making into the program.
