Amazon Raises Base Salary Cap by More Than Double Amid Talent Shortage and Hiring Competition

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Amazon has decided to more than double the upper limit of the base salary for office workers from $160,000 (about 190 million KRW) to $350,000, Bloomberg reported on the 7th (local time), citing an internal memo Amazon sent to its employees.

According to the report, Amazon stated in the memo that "This year, we witnessed a highly competitive labor market and, after reviewing various options, we determined that it is necessary to be competitive to attract talented individuals, so we decided to significantly increase compensation compared to previous years."

Amazon also said that, in addition to the base salary, it plans to raise the overall salary ranges for most job categories worldwide, explaining that "the increase is considerably larger than in the past."

As of the end of last year, Amazon employs 1.6 million people worldwide, but the company did not disclose the number of employees who will receive salary increases.

This announcement by Amazon came after reports of an internal survey revealed that low base pay was one of the main reasons employees wanted to leave Amazon. In the United States, the labor shortage has intensified due to the impact of COVID-19, causing job seekers to easily move to places offering higher allowances and wages.

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