Ahead of the busy holiday season and a Prime Day-like sale on Oct. 8-9, Amazon.com Inc. (NASDAQ: AMZN) has announced new benefits for its warehouse workers, starting next year.
What Happened: The new perk comes alongside a pay increase of at least $1.50 per hour for front-line employees. Prime membership, launched in 2005, now costs $14.99 per month or $139 annually and offers various benefits. The company told Fortune that the free Prime membership is exclusively available to front-line workers.
Amazon's Vice President of Worldwide Operations, Udit Madan, stated in a blog post that front-line team members are crucial in delivering Prime's benefits to customers. However, this perk is exclusive to warehouse workers; corporate employees must still pay for their own subscriptions.
Despite the wage increase, warehouse workers' pay remains significantly lower than that of corporate employees. According to ZipRecruiter, the average Amazon corporate employee earns $133,000 annually.
Why It Matters: The announcement comes at a time when Amazon is making several strategic moves. On Thursday, Amazon launched a generative AI-powered personal assistant, Project Amelia, aimed at helping U.S. sellers with personalized answers and updates.
Amazon ended its remote work policy, mandating a return to full-time office work starting in January.
This decision has drawn attention and criticism, particularly from former employees like John McBride, who questioned if this move was a form of "silent sacking" to reduce headcount and boost margins.
Additionally, Amazon announced on Wednesday that it would boost worker pay to over $29 per hour, marking an average increase of $3,000 annually for full-time employees. This $2.2 billion investment is part of the company's efforts to improve worker compensation amid regulatory scrutiny and unionization efforts.
Amazon's return-to-office mandate also extends to its One Medical subsidiary, which requires employees to come into the office three times a week starting in October.