Amazon will raise pay by up to $3 per hour for 500,000 workers

• Amazon will raise pay by up to $3 an hour for 500,000 employees.
• The company announced the change in a statement on Wednesday.
• Amazon is hiring for tens of thousands of jobs across the US.

Amazon will raise pay by up to $3 an hour for 500,000 employees, the company announced Wednesday.

The pay increases, which will range between $0.50 and $3 hourly, will affect workers across four teams: fulfillment, delivery, package sortation, and specialty fulfilment, the company said.

The increases represent an investment of over $1 billion in incremental pay, according to Amazon vice president Darcie Henry.

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Henry said the pay increase is to incentivize hiring for tens of thousands of jobs across the US.

"These jobs come with a range of great benefits, like medical, dental, and vision coverage, parental leave, ways to save for the future, and opportunities for career advancement-all in a safe and inclusive environment that's been ranked among the best workplaces in the world," Henry said in a release.

Amazon claims the median worker earned $29,007 in 2020, a $159 increase from the year prior. The e-commerce giant raised its minimum wage to $15 an hour in 2018.

Amazon workers in Alabama recently lost their bid to form what would have been the company's first-ever union in the US. Amazon told Insider it already offered "industry-leading pay" the union was pushing for, but labor activists and experts argue collective bargaining can increase wages further.

The firm roughly tripled its net profit to $6.33 billion and grew sales by 37% - to $96.1 billion - in the last quarter. The COVID-19 pandemic fueled a rise in online shopping and a need for cloud storage on Amazon Web Services as people spent more time at home.

Amazon did not have additional statement to add.

This story is developing. Please check back for updates.