Amazon Raises Warehouse Workers' Pay to $22/Hour, Adds Free Prime Membership

Amazon Raises Warehouse Workers' Pay to $22/Hour, Adds Free Prime Membership

Amazon Raises Warehouse Workers' Pay to $22/Hour, Adds Free Prime Membership

Amazon announced Wednesday that it will raise wages for its hourly warehouse workers and add a new employee benefit: free Prime membership. The move is aimed at attracting and retaining workers, and preparing for the upcoming holiday shopping season.

Starting this month, the average base pay for front-line employees in the U.S. will increase to more than $22 an hour, up from around $20.50 an hour previously. Amazon said the move will make its warehouse workers average hourly pay higher than other retail and logistics companies.

In addition to the pay raise, Amazon will also be adding Prime membership to its employee benefits package starting early next year. The service, which costs $140 per year, offers members benefits such as fast delivery, video streaming, and more. Amazon said the move will provide additional value to employees and further improve their quality of life.

The pay raise comes as Amazon gears up for its peak holiday shopping season. The company will host a second Prime Day-like sale event on October 8-9, aimed at attracting more shoppers and boosting sales.

Its worth mentioning that just last week, Amazon raised pay for its contract delivery drivers to around $22 an hour, part of its $2.1 billion investment in its third-party logistics operations this year.

Amazons move indicates that the company is working hard to attract and retain workers and prepare for the long-term growth of its business. Faced with an increasingly competitive environment, Amazon needs to attract and retain talent by enhancing employee benefits, while also ensuring its logistics system runs efficiently to handle the upcoming holiday shopping peak.

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