Amazon increases average pay for warehouse workers and adds free Prime membership perk

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Amazon announced Wednesday it's raising wages for its hourly warehouse workers, and adding a new employee perk that will give them a Prime subscription at no extra cost.

Starting this month, Amazon's average starting pay for front-line employees in the U.S. will be bumped to an average of more than $22 an hour, up from roughly $20.50 an hour, the company said.

Amazon said it's also making its Prime subscription service a part of employees' benefit package beginning "early next year." The service, which costs $140 a year, gives members access to speedy shipping and video streaming, among other perks.

Last week, Amazon also hiked wages for its contracted delivery drivers to roughly $22 an hour as part of a $2.1 billion investment this year into its third-party logistics program.

The wage hikes come as Amazon is preparing to enter the peak holiday shopping season, a period when retailers typically see a flurry of online shopping. Amazon said Tuesday it plans to host a second Prime Day-like deal bonanza on Oct. 8-9, the third year it's held the discount event.

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