September 24, 2024
US
The largest investment in salaries and benefits to date, totalling over $2.2 billion across the network.
An announcement was made regarding a significant investment in salaries and benefits for front-line hourly employees within the logistics and transportation network. This investment is part of an annual review of salaries and benefits to ensure their competitiveness, often at the top of the industry. This year marks the biggest investment ever made in this team, as a way to recognize the work done in support of customers and communities.
In 2018, Amazon took the lead in the industry by raising the starting wage to $15 per hour, more than double the federal minimum wage. Since then, this salary has continued to increase every year. Now, front-line hourly employees will receive at least $1.50 more per hour starting this month, bringing their average base pay to over $22 per hour and the average total pay to over $29 per hour, once benefits are included (such as health coverage from day one). This represents an average annual increase of $3,000 for full-time employees working 40 hours per week. With over 800,000 employees affected across the United States, this salary increase is equivalent to a total investment of over $2.2 billion.
Amazon has long offered one of the best benefit packages in the industry. This package includes health coverage from the first day of work, dental coverage, a 401 (k) program with company participation, flexible working hours, as well as tuition coverage in advance. Throughout the year, benefits are adjusted based on feedback from teams, whether for small adjustments such as flexible schedules, or for larger network-wide changes, such as adding new features to the prepaid education program. Career Choice. For example, access to language courses, formerly available after 90 days, is now available from the first day of work.
Another popular benefit has been added to the package: the subscription Prime. Starting early next year, Prime will be included in hourly employee benefits for U.S. operations at no additional cost.
This increase in wages and benefits is also accompanied by significant advances in safety. Over the past five years, registered injuries have declined by 28% and injuries resulting in work stoppages have declined by 75% in the United States. These efforts contribute to faster deliveries for Prime members, while supporting teams and communities throughout the year.
Source: amazon
