How Amazon’s Pay Increases Have Changed Over Time: A Data-Driven Analysis 2023

If you’re an Amazon employee, you might be curious about how often and how much your salary will increase. Amazon is famous for offering good pay, but the specifics about how they raise salaries can be a bit confusing. In this thorough guide, we’ll take a close look at Amazon’s pay increases in the past to give you a clear picture of what you can anticipate.

Here’s the quick answer: Amazon provides pay raise every year for most of their employees. The Amazon’s salary increase is usually between 1% and 5%, depending on how well they did their job. Some of the best workers who get promoted to higher positions can get bigger pay raises, up to 15% or 20%.

A Quick Look at How Amazon’s Pay Raises Have Varied Over Time

Amazon, which started back in 1994 with Jeff Bezos, has been a trailblazer in online shopping. It changed how we buy things on the internet and has also improved how it pays its employees. Now, let’s dive into Amazon’s past and see how they’ve increased their employees’ pay over time.

1. Annual Raises Since Founding

From the very beginning, Amazon understood the value of giving its employees yearly pay raise. This has shown how committed Amazon is to getting and keeping great workers. As time has gone by, Amazon has kept up with what other companies do and given bigger and bigger yearly raises. Whether it was just a small online bookstore or the huge global shopping site it is now, Amazon has always rewarded its employees for their effort and loyalty.

Amazon's Pay Increases Over Time: A Data-Driven Analysis chart

Here’s a list of details regarding annual pay raises at Amazon since its founding in 1994:

  1. 1994-2000: In the early years, Amazon was a startup, and like many startups, it was focused on growth. Employee salaries were generally in line with industry standards, but substantial annual raises were not a common practice during this period.
  2. 2001-2003: As Amazon continued to expand and diversify its product offerings, the company began to implement annual pay raise programs. During this time, annual raises were relatively modest, typically ranging from 2% to 5%.
  3. 2004-2008: Amazon experienced significant growth during these years, and this was reflected in the annual pay raises for its employees. Raises became more performance-based, with high-performing employees receiving larger increases, sometimes up to 10% or more.
  4. 2009-2013: In the aftermath of the global financial crisis, Amazon, like many other companies, tightened its budget for annual raises. During this period, raises tended to be in the range of 1% to 3%, with a stronger focus on performance evaluations.
  5. 2014-2018: Amazon’s business continued to expand rapidly, and the company was recognized as one of the largest e-commerce and cloud computing giants globally. Annual raises during this period typically ranged from 2% to 5%, with opportunities for larger increases for top performers.
  6. 2019-Present: In recent years, Amazon has faced increased scrutiny over its employee compensation practices. The company responded by announcing a minimum wage increase for all U.S. employees to $15 per hour, which had a positive impact on the starting salaries of many workers. Annual raises continue to be performance-driven, with top-performing employees having the potential to receive larger raises, sometimes reaching up to 15-20%.

Please note that these details provide a general overview of Amazon’s annual raises over the years and may vary based on factors such as job role, location, and individual performance. Amazon’s compensation policies are subject to change.

2. Pay Increase Amounts And Frequency

Some of the major details about the pay increase amounts and frequency at Amazon are:

  • Amazon provides pay raises for most employees once a year, typically in the range of 1-5% depending on performance. Larger increases up to 15-20% are possible for top performers moving to more senior roles.
  • Amazon also offers promotion raises to its employees who are promoted to higher positions within the company. These promotion raises can be significant, as they reflect the added responsibilities and contributions of the employees.
  • The frequency of pay raises at Amazon varies as well. While some employees may receive annual raises, others may be eligible for more frequent increases based on performance and promotions. Amazon’s performance-based pay structure ensures that employees are rewarded for their achievements and contributions to the company’s success.
  • Amazon has been increasing its pay for its workers in different countries and regions as it grows its business and faces competition. For example, in 2022, Amazon more than doubled its max base pay for corporate and tech workers from $160,000 to $350,000, citing a competitive labor market. In 2022, Amazon also invested nearly $1 billion in increased wages for its U.S. operations employees, raising the average hourly pay from $18 to more than $19. In 2023, Amazon increased its starting pay for UK workers again, by 10% in the last seven months, following the rise of the national living wage1. In 2023, Amazon also raised its pay for 500,000 warehouses, fulfillment, and delivery team members by between 50 cents and $3 per hour.
  • Amazon’s pay structure is competitive compared to other tech companies, as it offers not only base salary but also stock options, bonuses, and benefits. Amazon’s pay increases have also been influenced by market conditions, such as labor shortages and minimum wage laws.

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3. Promotion Raises at Amazon

Promotion raises at Amazon are one of the ways that the company recognizes and rewards its employees who are promoted to higher positions within the organization. Some of the major details about promotion raises at Amazon are:

  • Promotion raises can be significant, as they reflect the added responsibilities and contributions of the employees. Some employees may receive promotion raises up to 15% or 20% when they move to more senior roles.
  • Promotion raises are not guaranteed, as they depend on various factors such as performance, market conditions, and budget constraints. Some employees may receive smaller or no promotion raises depending on the circumstances.

These raises for promotions not only motivate employees to work hard and do their best but also show that Amazon is dedicated to helping its employees grow in their careers. When employees get significant pay raises for promotions, it encourages them to take on new roles and move up in the company. This means Amazon wants its employees to keep learning and advancing in their careers with the company.

Amazon vs. Other Tech Companies: A Salary Comparison Across Different Roles and Levels

Here’s a detailed comparison of salaries at Amazon versus other tech companies across different roles and levels:

  1. Software Engineers:
    • Amazon: Amazon typically offers competitive salaries for software engineers. The base salary for entry-level software engineers ranges from around $100,000 to $150,000 per year, with additional bonuses and stock options.
    • Other Tech Companies: Tech giants like Google, Facebook, and Apple often offer similar or slightly higher base salaries for entry-level software engineers. However, these companies may also provide more extensive benefits and stock options. A software engineer was offered $125,000.
  2. Software Development Engineers (SDE II):
    • Amazon: SDE IIs at Amazon can earn base salaries ranging from approximately $130,000 to $170,000 per year, with the potential for performance-based bonuses and stock grants.
    • Other Tech Companies: Comparable roles at companies like Google and Facebook may offer similar base salaries, but the overall compensation package, including stock grants and bonuses, can be more lucrative.
  3. Software Development Engineer III (SDE III):
    • Amazon: SDE IIIs are senior-level engineers at Amazon and can earn base salaries starting from around $160,000 to $210,000 per year. Their total compensation often includes substantial stock grants and performance-based bonuses. Amazon’s senior software development managers can make up to $340,000.
    • Other Tech Companies: Senior software engineers at top tech companies receive competitive base salaries, along with generous stock options and bonuses. Total compensation packages can vary but are generally high.
  4. Product Managers:
    • Amazon: Product managers (PMs) at Amazon earn competitive salaries, with entry-level PMs receiving base salaries of approximately $120,000 to $150,000 per year, along with performance-based bonuses.
    • Other Tech Companies: Tech giants like Google, Facebook, and Apple offer similar or higher base salaries for product managers, along with significant stock grants and bonuses.
  5. Data Scientists:
    • Amazon: Data scientists at Amazon receive competitive compensation, with entry-level salaries ranging from around $100,000 to $150,000 per year, plus bonuses and stock options.
    • Other Tech Companies: Data scientists at companies like Google and Facebook often enjoy similar base salaries but may receive more substantial stock grants and bonuses.
  6. Software Development Manager:
    • Amazon: Software development managers (SDMs) can earn base salaries starting from approximately $150,000 to $200,000 per year. Their total compensation includes stock grants and performance-based bonuses.
    • Other Tech Companies: Similar roles at other tech giants come with competitive base salaries, extensive stock options, and bonuses.
  7. Director/Principal Engineers and Managers:
    • Amazon: Directors and principal engineers/managers receive highly competitive base salaries, often exceeding $200,000 per year. Their total compensation includes substantial stock grants and performance-based bonuses.
    • Other Tech Companies: These senior leadership roles at top tech companies offer substantial base salaries, along with generous stock options and bonuses.

It’s important to note that compensation can vary based on factors such as location, experience, and negotiation skills. Additionally, while Amazon offers competitive salaries, other tech companies may provide more extensive stock options and benefits. As a result, candidates often consider the overall compensation package when evaluating job offers from different companies.

Bonuses And Stock Awards

Bonuses and stock awards are part of the compensation package that Amazon offers to its employees. However, the amount and frequency of these benefits may vary depending on the role, level, performance, and market conditions of the employees. According to the web search results, some of the facts about bonuses and stock awards in Amazon are:

  • Amazon provides on-hire bonuses and restricted stock units (RSUs) to its corporate and tech workers as part of their total pay. These incentives are meant to attract and retain talent, as well as align the interests of the employees with the company’s long-term goals.
  • Amazon also used to offer monthly bonuses and stock awards to its hourly workers, such as warehouse and delivery staff. However, in 2018, Amazon eliminated these benefits as it increased the minimum wage to $15 per hour for all US employees.
  • In 2022, Amazon more than doubled its max base pay for corporate and tech workers from $160,000 to $350,000, citing a competitive labor market. This move promised to bring Amazon’s base pay more in line with other big tech companies, such as Google, Facebook, Apple and Microsoft.
  • In 2023, Amazon told managers that it has decided to reduce the number of stock awards for employees in 2025 due to the economic climate and company budget. The company is also considering increasing the cash portion of pay instead, as some employees have been asking for a higher cash base pay, especially as its stock price dropped recently.

How to Make the Most of Amazon’s Pay Raises: A Step-by-Step Plan

As someone working at Amazon, it’s crucial to know that you can expect regular Amazon pay increases. Amazon is known for paying well, and you can boost your earnings by using some smart tactics .

If you want to make the most of Amazon’s pay raises, you can follow this step-by-step plan:

A. Stand Out at Work:

To boost your chances of getting bigger pay raises at Amazon, make sure you regularly do more than what’s expected of you in your job. When you go the extra mile and consistently deliver excellent results, it shows how dedicated and committed you are. This can catch the attention of your bosses and potentially lead to larger salary increases. Strive for excellence, take on extra projects, and keep delivering outstanding work.

B. Take On Additional Responsibilities

Another way to maximize your Amazon pay raises is by volunteering for more responsibilities. When you show that you’re willing to take on new challenges and go beyond your regular duties, you become even more valuable to the company. This can increase your chances of receiving higher salary boosts. Keep an eye out for opportunities to learn new skills and tackle projects that align with your interests and career goals.

C. The Power of Asking: Seeking a Promotion at Your Job

If you’ve consistently gone above and beyond at work and tackled extra tasks, it might be a good time to think about asking for a promotion. Promotions often come with bigger pay bumps and can open doors for your career.

To make your case, gather evidence of your accomplishments, skills, and how you’ve contributed to the company. Arrange a meeting with your boss to discuss your goals and get advice on how to move up in your career.

To make the most of your Amazon pay raises, it’s important to work hard, stay committed, and speak up when it’s appropriate. By consistently doing your best, taking on more responsibilities, and advocating for yourself when the time is right, you can boost your chances of getting larger pay increases and ultimately, achieving greater financial success at Amazon.

D. Negotiate your salary

 A fourth way to optimize your earnings from Amazon’s pay raises is by negotiating your salary. When you receive an offer from Amazon or a pay raise proposal, you can negotiate for a higher amount or better terms. You can use your performance, market value, and research data to support your case. You can also consider other aspects of compensation, such as stock options, bonuses, and benefits.

Here are some helpful tips to guide you through the negotiation process:

  1. Use Real-Life Examples: When you’re getting ready to discuss a pay raise at Amazon, it’s vital to gather concrete examples of your accomplishments. Talk about specific projects you’ve completed successfully, significant improvements you’ve made, or any extra responsibilities you’ve taken on. This will help show how valuable you are to the company. You should also collect data or stats that prove how your efforts have positively impacted the company’s finances. This kind of proof will make your request more convincing.
  2. Choose the Right Time: Timing is crucial when it comes to asking for a pay raise. It’s best to do it during your yearly performance review or after achieving a significant success. When your request lines up with positive events or achievements, it’s more likely to be accepted. You should also consider the company’s financial situation and any recent good news that might affect their decision.
  3. Be Prepared for Different Outcomes: While negotiating a pay raise at Amazon, it’s important to be ready for various results, including the chance that your request might not be approved. In such a situation, you should have a backup plan and be open to exploring other possibilities. This might mean looking for opportunities for advancement within the company, pursuing extra training or certifications, or even considering job options outside of Amazon. By showing that you’re willing to consider other paths, you can improve your position during the negotiation process.

Remember, negotiating a higher salary at Amazon takes confidence, preparation, and a clear understanding of your value. By presenting a strong case with real examples, choosing the right time to negotiate, and being ready for different outcomes, you can boost your chances of getting the raise you deserve.

E. Stay updated on market trends and company policies

A fifth way to benefit from Amazon’s pay raises is by staying updated on market trends and company policies. You can keep track of the latest developments in the industry, such as labor market conditions, minimum wage laws, and salary benchmarks. You can also stay informed about Amazon’s pay structure, such as base salary cap, stock awards, bonuses, and benefits. By staying updated, you can have a better understanding of your worth and expectations.


In conclusion, Amazon has a history of providing regular pay raises to its employees, reflecting its commitment to recognizing and rewarding their dedication. Over the years, these raises have evolved, becoming more performance-driven and substantial, particularly for top performers and those who secure promotions. Amazon’s competitive pay structure, including bonuses and stock options, places it among the leading tech companies.

Hello, I'm David, the author behind CritiquePortal. With a passion for technology, software, fashion, and all things innovative, I embarked on a journey to share my insights and knowledge with you. As a tech enthusiast and a fashion aficionado, I aim to provide you with well-informed articles, reviews, and trends that will keep you updated and inspired. Join me on this exciting exploration of the ever-evolving world of tech and style.

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