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Amazon Prime is now a perk for warehouse workers, but not for businesses

Amazon is offering its warehouse workers a long-awaited new benefit.

The e-commerce giant announced Wednesday that it will not only raise wages for frontline workers by at least $1.50 an hour, but will also offer Prime membership as a perk starting next year.

Amazon Prime launched in 2005 for $79 per year, and has steadily expanded beyond its initial offering of free two-day shipping to include streaming and digital benefits, grocery savings, medical and prescription benefits, and more. Now with a user base of more than 180 million U.S. shoppers as of March, Amazon Prime’s price has also increased to $14.99 per month, or $139 per year.

“Our frontline team members across our operations play a huge role in bringing the magic of Prime to customers, and starting early next year, Prime will be part of their benefits package,” Udit Madan, Amazon’s vice president of global operations, wrote in a blog post announcing the new benefits.

However, the free Prime membership is exclusive to frontline workers, the company said. Fortune. Corporate employees will still have to pay the full amount to purchase their own subscriptions. However, all employees, both logistics and corporate, will continue to receive a 10% discount on Amazon merchandise, up to a maximum discount of $100 per year.

Even with the new increase to an average base wage of more than $22 per hour, Amazon warehouse workers’ pay is still far lower than their office-based counterparts. According to ZipRecruiter, the average Amazon corporate worker makes $133,000 per year, or about $64 per hour.

As the number 2 company on the Fortune 500Amazon employs more than 1.5 million people and said the new pay increases represent a total investment of more than $2.2 billion in its workforce. When choosing benefits, the new increases bring the average total compensation to $29 per hour, or about $55,000 for a 40-hour workweek.

The pay raises and benefits come as Amazon prepares for the busy holiday season and an upcoming Prime Day-style sale on Oct. 8 and 9. The fall sale is the third savings bonanza of its kind this year, with previous events taking place in the spring and summer. During July’s Prime Day event, shoppers spent a record $14.2 billion, up 11 percent from last year, according to sales data from Adobe Analytics.

Amazon also made waves this week after CEO Andy Jassy announced that employees would return to the office five days a week. Previously, office workers had to use their buildings at least three days a week, depending on the needs of their team. However, the new full-time requirement will make exceptions for extenuating circumstances or for employees whose managers have already approved a fully remote role.

“Looking back over the past five years, we continue to believe the benefits of being in the office together are significant,” Jassy wrote in a memo to staff, saying he wants to operate as “the largest startup in the world.”

Jassy also plans to cut management levels, which have swelled in recent years due to a dramatic increase in hiring, according to employees who spoke to him. FortuneIt’s Jason Del Rey.

According to some employees, the return-to-office plan was not well received, and they criticized the new rules in the company’s internal Slack channel. Company Insider.

Others looked for new jobs via LinkedIn.

“If you have any remote work opportunities, please message me,” wrote one Amazon Web Services engineer. “Nothing is out of the question. I would rather go back to school than work in an office again.”