Workers in certain locations also will get a sign-on bonus of up to $3,000, which shows just how competitive the job market is. Amazon (ticker: AMZN) didn’t specify the locations where either the bonus or the higher wage will be paid.

Amazon now pays one of the highest minimum wages—if not the highest—by a U.S. retailer. In 2018, the tech giant established a minimum wage of $15 an hour, more than double the federal minimum wage of $7.25.

In the past few years, other retailers and consumer-based companies have raised their minimum wages. This year alone,

Walmart

(WMT),

Costco Wholesale

(COST),

Chipotle Mexican Grill

(CMG), and

McDonald’s

(MCD) have increased their starting pay.

Amazon let one of its warehouse workers in Miami speak to the benefits of its higher pay.

“Before Amazon, I was at a car wash making $9 an hour. Then I came to Amazon and I started earning $15 an hour—it was life-changing for me,” said Leonardo, who the company didn’t identify by his last name.

Amazon is on a hiring spree. At the beginning of September, the company announced it will fill 40,000 corporate and technology jobs; since the pandemic began in March 2020, Amazon has hired more than 450,000 people in the U.S.  

Tuesday’s announcement ties in with its offer last week to pay 100% of college tuition for more than 750,000 U.S. employees.

Also read: This Robot Trader Just Turned Bullish on Amazon, Facebook and Nvidia. Here’s What It Sold.

Amazon shares closed down 0.21%, to $3,450, on Tuesday. The stock has gained almost 6% so far this year and has risen 9.3% over the past 12 months, lagging the

S&P 500’s

18% and 31% gains over the same periods.

Write to editors@barrons.com