Udit Madan, Amazon's vice president of worldwide operations, said Amazon conducts annual reviews of their wages and benefits in order to maintain "competitive" and "industry-leading" rates for employees.
“We’re making a significant new investment in pay and benefits for the hourly front-line employees across our fulfillment and transportation network," Madan wrote in the announcement. "This is part of an annual process where we review our wages and benefits to ensure that they stay competitive—and in many cases, industry-leading.”
Amazon’s latest investment in wages and benefits for hourly employees totals $2.2 billion, increasing the average base wage to over $22 per hour. Employees working 40 hours a week will see an average annual increase of $3,000 due to Amazon’s wage hikes.
Employees can also access comprehensive benefits like health care from day one and a new Prime membership perk starting next year. The new benefits package includes health, vision, and dental insurance starting on the first day of employment for all full-time employees. Additionally, the company provides mental health support, including free counseling sessions and pediatric mental health services.
According to the Bureau of Labor Statistics, in 2023 the national average hourly wage for warehouse workers was approximately $17.70, placing Amazon’s $22 base wage above the industry standard.