Amazon is planning to more than double its base pay cap to $350,000 (about Rs 2.6 crore) from its previous maximum salary of $160, 000 (about Rs 1.19 crore) for its US employees.
Base pay is the basic remuneration that someone is paid for a job, exclusive of extra incentives such as overtime or bonuses.
The decision has been taken after evaluating the current competition in the labour market and thoroughly analysing various options such as the economics of the business. The Company is also competing to attract and retain top talent.
Amazon plans to increase the overall compensation for most jobs across its offices worldwide. It has changed the date for stock awards so that they can be aligned with promotions for employees at higher levels. Since compensation is unique for each employee, based on the position each one occupies, performance and economic condition, the benefit will affect everyone differently.
In 2020, Amazon raised the average starting wage for operations staff in the US to more than $18 an hour. Recently, the Company has been reporting huge profits, as it experienced its greatest one-day increase in value. Its shares increased by 13.5 per cent on 4 February, 2022.
The Company has been on a hiring spree, with massive recruitments for its warehouses. It has been struggling amidst The Great Resignation wave, with a reported 50 vice presidents quitting last year. It also increased the price of Amazon prime subscription by $20, taking the annual price to $139.