Amazon raises pay for fulfillment and transportation workers by $1.50 an hour, adds Prime membership as benefit

By Ciara Linnane

E-commerce giant says base pay will move to more than $22 an hour

Amazon.com Inc. is raising pay for fulfillment and transportation workers by $1.50 an hour starting this month, raising the base wage to more than $22 an hour, or $3,000 a year on average for full-time employees who work a 40-hour week.

The e-commerce and cloud giant announced the move in blog post on Wednesday, in which it said it's also adding Prime membership to its benefits package starting early next year.

"Hourly team members in the U.S. will get Prime at no additional cost for as long as they are a part of the Amazon team," said the blog post authored by Udit Madan, vice president of Amazon worldwide operations.

As one of the biggest private employers in the U.S. with more than 800,000 people working at its distribution centers and delivery trucks, the pay increase is a total investment of more than $2.2 billion, said Madan, the biggest ever made by the company in pay and benefits.

The news comes at a time when many Americans are struggling to pay bills and make ends meet after a long period of inflation and high interest rates.

Other perks to be added include immediate access to language classes, which previously were only available after working at the company for 90 days. Amazon also offers healthcare coverage, a 401(k) match and prepaid tuition.

The stock was up 1.8% premarket and has gained 22.7% in the year to date, while the S&P 500 has gained 17.8%.

Read now: Why Gen Z is willing to trade lower pay for a better work-life balance

-Ciara Linnane

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09-19-24 0650ET

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