Amazon’s warehouse and transportation workers will get an average starting wage of more than $19 (roughly Rs. 1,560) an hour, up from $18 (roughly Rs. 1,500), the world’s largest online retailer said on Wednesday.
The wage increase will help the company attract and retain workers in the U.S. labor market as the peak gift-giving season gets under way.
Amazon said the pay hike will cost the company nearly $1 billion (roughly Rs. 8,200 crore) over the next year.
Employees will now earn between $16 (roughly Rs. 1,300) and $26 (roughly Rs. 2,100) per hour depending on their status and location in the United States, the company added.
Amazon’s minimum wage for hourly workers in the US is $15 (about Rs 1,200), a spokesperson told Reuters.
The online retailer’s decision also comes as some workers push to unionize Amazon facilities in the United States. So far, only one Amazon facility has voted to unionize.
The company is grappling with rising inflation and high employee turnover as workers seek higher wages to meet the rising cost of living.
Amazon had 1.5 million full- and part-time employees globally in the quarter ended June 30, with the majority of workers based in the United States.
Earlier Wednesday, Amazon announced new devices, including a lineup of voice-controlled devices, an updated e-reader that users can write on, and a contactless gadget that can monitor people’s sleep.
