Will Amazon raise wages? (how often, how much + more)
Not only is Amazon a massive e-commerce retailer serving millions of shoppers in the U.S. and around the world, but it’s also one of the largest employers in the U.S., expanding its workforce and number of locations.
If you or someone you know has considered working for Amazon, you may be wondering if Amazon offers a raise. I couldn’t help but think the same thing, so I did my research and here are all the facts I found behind Amazon’s competitive pay and raises.
Will Amazon raise wages?
Amazon gives many employees a raise every year, which usually happens around May each year.Additionally, Amazon has a minimum wage of $15 an hour and recently offered its more than 500,000 U.S. operations employees a raise of 50 cents to $3 an hour
If you want to learn more about compensation at Amazon, including how often and by how much the company raises, keep reading!
How often does Amazon give raises?
Salary raises at Amazon depend on department and length of employment.
While many workers get raises annually, if not every six months, the increases are not uniform due to Amazon’s large workforce.
Nearly 1 million people, or 1 in every 169 U.S. employees, work for Amazon, and 30 different teams cover every aspect of the business. This includes Amazon Web Services, Fulfillment &
Operations, Transportation & Logistics, Commerce & Enterprise, and more.
With this in mind, Amazon gives different teams salary increases based on their performance and current compensation. While most employees get a raise at least annually, it’s not guaranteed.
Amazon typically announces its employee raise plans early and mid-year.
By making this information public about good starting salaries and competitive raises, Amazon hopes to encourage more people to apply for its job openings, as there are thousands of them consistently.
How Much Does Amazon Pay?
Currently, Amazon’s pay raises typically range from 50 cents an hour to $3 an hour.
The company’s most recent raise gave 500,000 workers in warehouses, fulfillment and delivery teams, adding a total of $1 billion in pay for these trusted Amazon workers.
Of course, unlike some of its smaller competitors, the abundance of resources puts Amazon in a position to offer generous raises on top of an attractive starting salary.
Amazon is worth $1.7 trillion, and as the company continues to grow, so does the likelihood of more exciting salary increases for employees in the future.
An employee’s performance and history with the company may be considered when deciding on a raise, as well as how their current compensation level compares to the rest of the team and the company as a whole.
While Amazon is more generous than most when it comes to raises, the retailer is still looking for employees who work hard and meet (if not exceed) expectations.
For example, a warehouse team that regularly meets quota ahead of schedule should stand out when it comes to annual performance/compensation reviews.
Not only is Amazon handing out raises to thousands of employees, but in many cases exciting signing bonuses.
These bonuses, which can amount up to $3,000, serve as an incentive for future employees as Amazon constantly needs to hire new workers to keep up with its growth and demand for its services.
Does Amazon Pay for Reviews?
Amazon has an annual performance review process, just like any other company.
The review gives managers and their employees an opportunity to reflect on the past year’s work, the overall performance of employees, and any room for improvement.
Salary increases may also be on the agenda during this review process, especially for employees who were not graded on their performance and maintained Amazon’s high standard of customer service throughout their employment.
Employees can look forward to a performance/compensation review after one year at Amazon, and then each year thereafter, with consideration for appropriate raises.
The higher up an employee’s ladder, the more likely they are to receive a larger raise each year.
While an entry-level warehouse worker might see a $0.50 to $3 per hour bump on their payroll, Amazon’s corporate employees typically receive thousands of dollars in raises a year based on their performance and skills.
Is Amazon’s salary competitive?
Keep in mind that Amazon’s raises are quite impressive considering the company’s extremely attractive starting salaries.
In 2018, Amazon raised its minimum wage in the U.S. to $15 an hour, though many workers earn more. With annual raises and exciting bonuses, Amazon has become one of the most popular places to work in America.
Not many other U.S. companies offer the same minimum wage and job opportunities as Amazon.
However, a growing number of large retailers are following in Amazon’s footsteps, with Best Buy, Costco and Target all committing to pay all employees at least $15 an hour.
While other big-name retail brands have performance reviews and raises, Amazon has the second-largest workforce after Walmart.
With 1 million employees and growing, Amazon is committed to offering competitive compensation and attractive employee benefits to hire and retain the workers who will keep the multibillion-dollar company running smoothly.
If you want to know more, you can also read our related posts about when does Amazon pay wages, does Amazon give bonuses, and Amazon’s mandatory overtime policy
in conclusion
Amazon has overtaken many of the leading U.S. employers over the past decade and is now No. 2 in terms of total U.S. employment.
One of the key reasons Amazon is able to attract and retain workers is competitive compensation, which includes a minimum wage of $15 an hour plus signing bonuses and annual raises.
Amazon has dozens of recruiting teams, and each department may receive different raises based on their starting salary and performance expectations.
Amazon typically gives workers annual raises following an annual performance and compensation review, but sometimes the company throws in a big round of raises to spark enthusiasm and public interest.
Amazon’s last big pay raise came in mid-2021, when the retailer announced pay increases for its 500,000 warehouse, logistics and delivery workers, ranging from 50 cents to $3 an hour. The longer employees stay with Amazon, the bigger their future salary increases will be.
