Amazon said on Wednesday, Sept. 16 that it will raise the minimum starting wage for its US full-time core operations employees to $20 an hour, beginning Sept. 27, as it prepares for the holiday shopping season.
The increase adds $1 an hour for front-line employees who sort, pack and transport orders. Amazon, the e-commerce and cloud company, said the typical hourly wage for those workers will rise to nearly $24.
Including benefits, total compensation for the workers will exceed $32 an hour, Amazon said. The company put the cost of the pay increase at more than $1.5 billion.
The announcement comes before the crucial holiday shopping period, when order volumes and staffing needs typically become more pressing for operations that move goods through warehouses and delivery networks. Amazon faces continuing competition for workers and recruitment pressure, particularly during peak seasons.
Amazon said its minimum starting pay has increased by more than 17% over the past three years. It first established a $15-an-hour minimum wage in 2018.
The company did not give a reason for choosing a $1-per-hour increase. It also did not say whether the change would extend to part-time staff, how pay may differ across US operations, or what effect it expects on hiring and retention.
The announcement sets out the pay level Amazon intends to offer before its busiest retail period. It does not provide a comparison with warehouse wages offered by other employers.
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