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Amazon Raising Pay for Hundreds of Thousands of Workers

On Wednesday announced to raise wages for more than 500,000 of its employees in the United States. It will raise the wages of its workforce by between 50 cents and $3 an hour, said Darcie Henry President of Amazon in the recent blog post published on the website. 

The pay hikes are expected to take effect from mid-May through early June. it has also confirmed that it will move up its annual pay review to this spring for employees working in customer fulfillment, package sorting, delivery, and other e-commerce activities. 

Henry added- “This is on top of our already industry-leading starting wage of at least $15 an hour and the more than $2.5 billion that we invested last year in additional bonuses and incentives for front-line teams”. 

The move comes after senior administration officials disclosed that President Joe Biden plans to sign a new measure. It will raise the pay of federal contract workers and tipped employees to $15 per hour. 

In addition, it has raised the minimum wage to $15 per hour for all US workers back in 2018 after it faced pressure from politicians and other worker advocacy groups.

Meanwhile, the company even expressed high support for Biden’s “Raise the Wage Act”, which aims at increasing the national minimum wage to $15 by coming years (2025). 

In early April, the e-commerce giant also promoted its $15 per hour initial pay in a high-stakes election at an Amazon warehouse in Alabama. 

This new move will incentivize the company’s plan of hiring tens of thousands of people for operational hubs across the US. In 2020, Amazon hired around 500,000 new workers due to exponential demand for its services. This eventually helped people to get a better employment opportunity during the global pandemic. 

People believe the pay hikes could help the firm attract more and more workforce amid a tight labor market due to some known factors. 

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