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Doubled! Amazon Significantly Raises Maximum Base Salary to $350,000

The U.S. employment market situation has “seemingly” improved recently, with outsiders believing that last Friday’s explosive non-farm payroll data is the best proof—after all, the 467,000 new jobs added is four times the expected 125,000.

However, all of this comes at a cost, paid for by companies with real money.

Detailed Explanation

As Wall Street Journal previously mentioned, the latest U.S. opinion poll shows that more than half of Americans requested a raise during the pandemic, and nearly three-quarters said they received salary increases of up to 50%.

This also demonstrates that under the “favorable wind” of tight labor supply, salary increases have become an unavoidable trend in the current U.S. job market, just as Goldman Sachs CEO pointed out—”wage inflation everywhere.”

So very few companies can escape this trend, and Amazon is no exception. Moreover, according to media reports, low wages have been listed by its employees as one of the main reasons they want to leave.

Implementation Steps

Therefore, this Monday, Amazon stated in an internal memo to employees that the maximum base salary for all employees will be significantly increased from the previous $160,000 to $350,000.

Base salary is only part of an employee’s total compensation, which also includes signing bonuses and restricted stock units, among other things. The timing of stock awards will also be adjusted to align with position promotions, as stock incentives have always been an important part of Amazon’s compensation structure.

Furthermore, the salary increase is not limited to U.S. operations only; the memo mentioned that this salary adjustment covers most positions globally.

Important Considerations

As the pandemic continues to spread, more and more U.S. companies are willing to offer more flexible work arrangements, such as remote work. This has led to a reality for tech companies like Amazon: if they don’t offer more “benefits,” it will be very difficult to retain the talent they want.