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Amazon UK to spend 170 million stg on staff pay rises
Global Banking & Finance Review®
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LONDON (Reuters) -Amazon UK will spend 170 million pounds ($207 million) on two pay rises for its frontline operations staff over the next six months in a move which could catch the attention of
LONDON (Reuters) -Amazon UK will spend 170 million pounds ($207 million) on two pay rises for its frontline operations staff over the next six months in a move which could catch the attention of the Bank of England which is keeping a close eye on inflation pressures.
The internet giant, which employs 75,000 in the UK, said on Monday that from Oct. 15, minimum starting pay would increase by at least one pound an hour to between 11.80 pounds and 12.50 pounds, depending on location.
Pay rates will further increase to between 12.30 pounds and 13 pounds an hour from April next year.
The increases mean Amazon’s minimum starting pay will have risen by 20% in two years, and 50% since 2018, it said.
Last month, as it paused a run of interest rate hikes, the BoE said record growth in workers’ pay, which has been its biggest concern, was not backed up by other measures of the labour market, suggesting it expected wage growth to slow soon.
Amazon UK also said it has started recruiting for more than 15,000 seasonal roles across the UK for the festive period.
Last week, supermarket groups Morrisons and Aldi said they were hiring 3,500 and 3,000 extra staff for the Christmas season.
($1 = 0.8214 pounds)
(Reporting by James Davey; Editing by Kate Holton)
Minimum wage is the lowest remuneration that employers can legally pay their workers. It is set by law and varies by country and region.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually.
Wage growth refers to the increase in the average pay workers receive over time. It is often influenced by factors such as inflation, labor market conditions, and company performance.
Seasonal roles are temporary jobs that are available during specific periods of the year, such as holidays or peak seasons, often requiring additional staff to meet increased demand.
Frontline operations staff are employees who directly interact with customers and are responsible for delivering services or products, often in retail or service industries.
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