Amazon is one of the largest employers in the United States and the world. With over 1.6 million employees worldwide, Amazon hires people for a wide variety of roles from warehouse associates to software engineers.
Average Starting Pay at Amazon
The average starting pay for most Amazon warehouse workers in the U.S. is around $15 per hour. This equals about $31,200 per year for a full-time worker. However, pay can vary based on location, role, and level of experience.
Here is a breakdown of typical starting wages for common Amazon roles:
| Role | Average Starting Hourly Wage |
|---|---|
| Warehouse Associate | $15 |
| Delivery Driver | $16 |
| Customer Service | $15 |
| Software Engineer | $108,000 annual ($52/hour) |
As shown, software engineering roles start at over $100k per year, while warehouse and delivery jobs start around $15-16 per hour. Geographic location also impacts Amazon pay. Jobs in high cost-of-living cities like New York or San Francisco will pay more than the same role in a small town.
Amazon Warehouse Pay
Most Amazon warehouse associates in the United States start at between $15 to $16 per hour. This wage is fairly consistent across the U.S. thanks to employee pressure and a competitive labor market. Some variations do exist for cost of living.
In addition to base pay, Amazon warehouse workers can earn the following:
- Overtime pay for working more than 40 hours per week
- Night shift differential for working overnight hours
- Bonus for working on holidays like Christmas
Benefits like health insurance, retirement savings, and company stock may also be available. These can add thousands in value on top of direct wages.
Starting Wages at Major Warehouses
Here are the published starting wages at several major Amazon fulfillment centers in 2022:
| Warehouse Location | Starting Wage |
|---|---|
| San Bernardino, CA | $15.50 per hour |
| Sacramento, CA | $15.50 per hour |
| Kent, WA | $16 per hour |
| Hebron, KY | $15 per hour |
| Houston, TX | $15 per hour |
Again, the range is generally between $15 to $16 per hour. Higher wages reflect higher costs of living in some areas like Seattle. The minimum wage directly at Amazon fulfillment centers likely ranges from $15 to $18 per hour currently.
Seasonal Warehouse Employee Pay
During busy periods like the holiday season, Amazon hires temporary seasonal warehouse workers. Pay for these seasonal associates is similar to year-round workers.
In 2021, Amazon advertised holiday jobs starting at the following wages:
- $15 per hour in Houston, Miami, and Denver areas
- $16 per hour in Kent, Washington
- $16.40 per hour in Tracy, California
Some locations advertised sign-on bonuses up to $3,000 for seasonal workers. Again, seasonal employee pay aligns closely with regular full-time wages.
Amazon Delivery Driver Pay
Delivery drivers for Amazon start at similar hourly wages as fulfillment center workers. The average starting pay for an Amazon delivery driver is $16 to $18 per hour.
Amazon delivery jobs are available through multiple programs:
- Amazon Flex – Make deliveries using your own vehicle. Paid per delivery or block.
- Delivery Service Partners – Work for small independent delivery companies contracted by Amazon.
- Amazon DSP Driver – Work for Amazon delivery service partner companies.
Wages for Flex drivers depend completely on the number and rate of deliveries made. DSP drivers make around $16 to $18 per hour to start.
DSP drivers and partners may also receive benefits like health insurance, retirement plans, stipends, and more. Overall compensation can exceed $20 per hour with benefits factored in.
Starting Pay for Amazon Delivery Contractors
Here are some examples of starting pay for Amazon delivery drivers at DSP partner contractors:
| Delivery Service Partner | Starting Pay |
|---|---|
| Inpax Final Mile | $15.50 per hour |
| Golden State FC | $16.90 per hour |
| Prime EFS | $15 per hour |
| Devaughn Duvall DSP | $18 per hour |
Driver wages at Amazon partners range from around $15 to $19 per hour, plus any overtime pay or bonuses. Location, benefits, and shift differentials impact pay as well.
How Experience Affects Amazon Pay
The starting wages above are generally applicable for entry-level Amazon associates with no prior experience. Employee pay can increase steadily the longer they stay with Amazon.
After one year, Amazon warehouse workers may see pay increases of 5% or more. Long-term associates with 5+ years of tenure can make $3 to $5 per hour above starting wages.
In addition to tenure, taking on more responsibilities can boost Amazon pay. Moving into an indirect role like process guide or safety specialist comes with higher hourly pay or salary.
Amazon also offers internal advancement opportunities. Ambitious workers can move into supervisory, management, and leadership roles with ample training and career development programs.
Average Amazon Pay by Experience Level
According to Glassdoor data, the average pay for Amazon employees at different experience levels is:
| Experience Level | Average Hourly Pay |
|---|---|
| 0-1 years | $15 |
| 1-3 years | $16 |
| 3-5 years | $18 |
| 5-10 years | $21 |
| 10-20 years | $25 |
As shown, hourly pay can reach $5 to $10 above entry-level after 5+ years at Amazon warehouses. Even more advancement is possible for corporate and tech roles.
Amazon Employee Benefits
In addition to hourly wages and salaries, Amazon provides the following benefits:
- Health insurance – Comprehensive medical, dental, vision plans.
- 401(k) plan – Retirement savings plan with company match.
- Stock awards – RSU stock awards for employees.
- Parental leave – Up to 20 weeks of paid leave for new parents.
- Career training – Fully paid college tuition and technical training.
- Employee discounts – Discounts on Amazon products and services.
These benefits can add thousands of dollars in annual value on top of Amazon salaries. The company even pays 95% of medical insurance premiums for employees and families.
Additional perks like on-site gyms, tuition assistance, and adoption benefits are also available. The full range of benefits varies for corporate vs warehouse employees.
Estimating Total Compensation at Amazon
Combining wages, bonuses, stock awards, and benefits provides a complete picture of total annual compensation:
| Compensation Element | Estimated Value |
|---|---|
| Base Salary | $31,200 ($15 per hour) |
| Health Insurance | $5,000 |
| 401(k) Match | $1,500 |
| Stock Grants | $3,000 |
| Total | $40,700 |
Factoring benefits, the total compensation for an Amazon warehouse worker can reach $40,000 per year or more. Higher salaries, bonuses, and stock awards boost overall pay even further for corporate employees.
Comparing Amazon Pay to Other Retailers
Amazon pay tends to be competitive with similar entry-level jobs in retail, fast food, and warehousing. Here’s a comparison of starting hourly wages:
| Company | Average Starting Hourly Wage |
|---|---|
| Amazon | $15 |
| Target | $15 |
| Walmart | $12 |
| UPS | $14 |
| FedEx | $15 |
Amazon matches or exceeds starting pay at leading retailers like Target and Walmart. Their $15 minimum wage is also ahead of shipping rivals UPS and FedEx.
Higher compensation, benefits, and career advancement make Amazon competitive for entry-level jobs seekers looking to build skills and income over time.
Conclusion
Most Amazon warehouse employees start at between $15 to $18 per hour, depending on role and location. When factoring overtime, bonuses, stock awards, and benefits like healthcare, total compensation can reach $40,000 or more.
Pay rates are competitive for beginning workers with no experience. But long-term Amazon employees can potentially double their starting wage through tenure, promotions, and career development.
Strong compensation and opportunities for internal mobility make Amazon jobs appealing for those seeking stability and income growth over time. Amazon investing heavily in employees and opportunities reflects their rapid growth needs as a leading global employer.