24 Oct 2023
Reading time
≈2 minutes

Amazon UK has announced that it will allocate £170 million ($207 million) towards two pay raises for its frontline operations employees over the coming six months. This decision might draw the attention of the Bank of England, which is currently monitoring inflation pressures.

The e-commerce behemoth, which has a workforce of 75,000 in the UK, declared that starting from October 15, the minimum starting wage will see an increment of at least £1 per hour, bringing it to a range of £11.80 to £12.50, based on the location. This rate will further rise to between £12.30 and £13 an hour by April of the following year.

This means that in the span of two years, Amazon’s minimum starting pay will have seen an increase of 20%, and a substantial 50% growth since 2018.

Last month, the Bank of England, while temporarily halting a series of interest rate increases, indicated that the unprecedented growth in workers’ salaries, which has been a primary concern, wasn’t supported by other labor market metrics. This suggests the bank anticipates a deceleration in wage growth in the near future.

In addition to the pay raise, Amazon UK has also begun the recruitment process for over 15,000 seasonal positions across the UK in preparation for the upcoming holiday season. This follows announcements from supermarket chains Morrisons and Aldi last week, which revealed plans to hire an additional 3,500 and 3,000 staff respectively for the Christmas period.


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