What Should I Know About My Amazon Benefits? (2024)

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There are many reasons to want to work at Amazon and the way it supports its employees and their families from the day you first start working is one reason.

Amazon provides great benefits for all employees working between 20 - 40 hours a week. While actual benefits may vary by position and negotiated compensation, Amazon protects its employees’ financial well being by providing great financial benefits including Amazon restricted stock unit (RSU) shares and a 401(k) plan.

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What Should I Know About My Amazon Benefits? (1)

What is an Amazon RSU?

An Amazon RSU is the right to receive a share or payout at a future date or subject, to some performance condition. It is gifted by Amazon at the start of your employment. For reference, one RSU equals one share of stock once you become vested.

You receive your shares upon being hired, but they aren’t worth anything just yet. You’ll receive a vesting schedule based on your compensation. Your plan documents tell you the exact number of RSUs you’ll receive and how you may earn additional units.

Related Article |The Ultimate Guide on Equity Compensation and Taxation

Things You Need to Know About Amazon Restricted Stock Units

As we said above, Amazon Restricted Stock Units are a part of your compensation, but they aren’t worth anything until you’re vested. Once you’re vested, though, you’re free to do what you want with the stock.

Each unit is worth the current price of an Amazon share on the date that you become vested. However, Amazon RSUs create a tax liability when you become vested. You’ll pay taxes as you would on your ordinary income at that time.

Other things to know about Amazon RSUs are:

  • Make sure you understand what happens to your RSUs if you take parental leave

  • Your RSUs don’t expire

  • You’ll lose vesting if you leave Amazon before you’re fully vested

  • You may have specific trading windows to trade the stock once you’re vested to prevent insider trading

Related Article |8 Tips If You're Being Compensated With Incentive Stock Options (ISOs)

Amazon RSU Vesting Schedule

Most companies operate on a 25-25-25 vesting schedule, but Amazon RSUs are on a different schedule. Amazon is on the 5-15-40-40 schedule.

For example, if you are promised 200 shares of Amazon, you’d receive 10 shares on the 15th of the month of your first anniversary, 30 shares on the 15th of the month of your second anniversary, 80 shares six months later, and the final 80 shares in another 6 months.

This means your tax liabilities are much higher in years 3 and 4, so prepare your finances accordingly or get with your tax advisor.

Amazon Employee Stock Options

In a move to increase its minimum wage, Amazon revamped its compensation plan, which no longer included Amazon employee stock options, and after 2019, with RSUs vesting in 2020 and 2021, Amazon is replacing the program with a Direct Stock Purchase Program.

Related Article |5 Things to Know About Your Restricted Stock Unit

Understanding Your Tax Impacts as an Amazon Employee

Generally, RSUs are awarded at no cost without a Section 83(b) election.

Tip: A section 83(b) Election is an IRC provision that allows employees to pay ordinary income taxes on the total fair market value of the restricted stock at the time of granting rather than the time of vesting.

What Should I Know About My Amazon Benefits? (2)

As you can see in the graphic, you are given the shares at no cost. However, once you are vested, it triggers a tax liability and you will pay ordinary income taxes on the amount of gain between fair market value (FMV) at grant and FMV at vesting. Even if Amazon typically withholds 22 percent of the value for taxes, for some (depending on your tax bracket), this may not be enough, so be prepared for a higher tax liability in the higher vested years.

Additionally, when you go to sell the shares, you will pay capital gains taxes for the amount of gain between FMV at vesting and FMV at the sale. Capital gains taxes will vary depending on how long you’ve held the stock, your taxable income, and your filing status. f you sell the stocks right away once vested, you’ll pay ordinary capital gains taxes. If you hold onto the stock for longer than a year, you’ll pay long-term capital gains taxes. So, it’s important to prepare yourself for the liability.

Related Article |What Is The Difference Between A 401K And An IRA?

Understanding Your Amazon Employer Plan

Amazon 401(k) Plan

Your 401K contributions also have tax liabilities, depending on how you invest. If you choose a standard 401K, Amazon invests your funds pre-tax (before taxes). You get the benefit of a lower tax liability now, which means a slightly higher paycheck. You owe taxes on the contributions and earnings when you withdraw them during retirement. You’ll pay your current tax bracket at the time that you withdraw the funds.

You may also choose a Roth 401K, which means after-tax contributions. You pay standard taxes on your paycheck and the 401K withdrawals are made after taxes. Your contributions and earnings grow tax-free in this account. You can withdraw the funds without a tax liability during retirement, as long as you wait until you’re 59 ½ years old.

Amazon 401(k) Match

Amazon helps employees plan for the future by contributing to their 401K. Eligible employees receive $0.50 for every $1 they contribute to their retirement account. Amazon matches contributions totalling up to 4 percent of its employees’ salaries - Amazon contributes a maximum of 2 percent.

Amazon doesn’t match catch-up contributions for those over 50-years old and the employee match is in Amazon stock. You are free to do what you want with the match, whether you stay invested in the company stock or you diversify your portfolio more to reduce its risk.

Employees aren’t immediately vested in their matching contributions, though. You must have at least 3 years of vesting service. Each year that you work 1,000 hours or more is a vested year. Once you work three of these years, you’re vested, and can keep the matching contributions.

Employees may contribute up to $19,500 (the 2020 limit for 401K and Roth 401K), or between 1 percent and 90 percent of their eligible pay. Employees may make pre-tax contributions (regular 401K) or after-tax contributions (Roth IRA). The $19,500 limit is a combination of both accounts (if you have both).

Related Article |Guide To Understanding Your American Pay Stub

Amazon's RSUs and 401(k) Plan Sweeten the Compensation Deal

As you look at your employment options, think of the benefits Amazon RSUs offer. Even if you have a slightly lower salary, the ability to own shares of Amazon stock upon becoming vested is a large benefit, especially given its high stock price today.

While there’s no guarantee where the Amazon stock prices will be when you become vested, chances are pretty good that it will still be a nice benefit that will help you in your financial future.

Get Started

What Should I Know About My Amazon Benefits? (2024)

FAQs

How long do you have to work for Amazon to get benefits? ›

Starting on your first day of employment, Amazon offers a wide range of benefits to support you and your family at home and beyond.

How many hours a week is Amazon benefits? ›

Working 40 hours a week, these schedules provide a full range of benefits to our associates and eligible family members – including domestic partners and their children.

Do Amazon workers get free prime? ›

Do Employees Get a Discount on Amazon Prime? Unfortunately, NO. Employees are stuck paying full price for a Prime Membership.

Do Amazon employees get good benefits? ›

In addition to fair pay, employees have opportunities to own Amazon stock, participate in 401(k) plans with company match, and enroll in paid life and accident insurance. Financial counseling and estate planning services are also available, plus paid short-term and long-term disability if needed.

What benefits does Amazon pay later? ›

What is Amazon Pay Later? Amazon Pay Later is the hassle-free way to get instant credit, via a completely digital process, for purchases using EMI on Amazon.in. You have to complete the one-time setup process, which should not take more than 2 minutes and does not require you to provide credit card details.

How much is Amazon holiday pay? ›

Full-time employees will receive a holiday benefit equivalent to their basic hourly rate times their hours worked on the holiday. In addition to the holiday benefit, full-time hourly employees also receive one and one-half times their basic hourly rate for each hour they are required to work on an observed holiday.

Does Amazon pay holiday pay? ›

Amazon has 7 paid holidays. You earn 1.5 your hourly rate if you actually work on the holiday. On top of that you also earn holiday pay, which is either 6 or 8 hours depending on your schedule that is paid at your regular rate. Christmas, Thanksgiving, fourth of July, Labor and Memorial Day, New Years.

How much does Amazon pay a month? ›

How much does an Amazon Employee make? As of Mar 5, 2023, the average monthly pay for an Amazon Employee in the United States is $4,212 a month.

How much PTO does Amazon give every week? ›

Annual accrual rates for salaried employees
Completed Years of ServicePart Time (20–29 hours per week)Reduced Time (30–39 hours per week)
040 hours60 hours
160 hours90 hours
6+80 hours120 hours

What happens if you work 7 days in a row Amazon? ›

Overtime for Day Seven of a Workweek

Under California Labor Code Section 510 (the “day of rest” law), any covered employee who works for seven consecutive days in a single workweek must be paid one and a half times their normal rate for the first eight hours on their seventh day.

Can I take a week off working in Amazon? ›

In addition, we offer paid time off – annual leave is up to 5 weeks plus bank holidays. Maternity and paternity leave is offered, depending on tenure. You can also take unpaid leave to look after your child's welfare.

Do Amazon employees get raises? ›

Amazon says it's raising its average starting pay for frontline workers from $18 to $19 a hour. Sept. 28, 2022, at 9:41 p.m.

What discount do Amazon employees get? ›

Like other retailers, Amazon rewards employees with a staff discount. Amazon employees receive a 10% discount on items sold directly by Amazon.com. Keep in mind, the discount only applies to merchandise sold directly by Amazon.com. The discount will not apply if the item is fulfilled by a third party.

Can my friends use my Amazon employee discount? ›

Amazon employees can use the Amazon Extras program to make purchases on behalf of their friends and family.

Is Amazon paying well? ›

Half of Amazon salaries are above $180,145. 5718 employees at Amazon rank their Compensation in the Top 20% of similar sized companies on Comparably (based on 17757 ratings) while 5520 employees at Amazon rank their Perks And Benefits in the Top 20% of similar sized companies on Comparably (based on 5954 ratings).

Does Amazon employees work on Christmas? ›

Christmas Eve Christmas Day and Thanksgiving workers at Amazon fulfillment center work 10 + hours. You can choose to work. Amazon never closes its warehouses. We do not work on third shift Christmas eve or day.

Does Amazon help employees find housing? ›

Amazon's Housing Equity Fund is a more than $2 billion commitment to preserve and create more than 20,000 affordable homes in three communities where we have a high concentration of employees: Washington State's Puget Sound region; the Arlington, Virginia region; and Nashville, Tennessee.

Can we use Amazon Pay later for fuel? ›

Yes, you can use Amazon Pay ICICI credit card in petrol pumps. You can benefit by getting a waiver of 1% on fuel surcharge. This is valid on spends per transaction across all fuel pumps.

How much is Amazon Pay Later limit? ›

You can borrow up to Rs 10,000 for one month and pay it back the following month. 3 months tenure options are available between the amounts of Rs. 3,000 and Rs 30,000 and you will have an option to buy now or Pay later in EMIs. There are several other options ranging up to 12 months.

Does Amazon Pay later check credit? ›

This newly introduced payment option gives customers the opportunity to hold items and complete the payment in five instalments, either by credit or debit card, without having to go through a credit check or pay any associated fees.

Does Amazon pay double for overtime? ›

Amazon currently pays $15 per hour or more in some areas of the U.S. for warehouse and delivery jobs. Any employees working overtime at its U.S. warehouses will earn double their hourly wages.

Does Amazon give Christmas bonuses? ›

Yes, Amazon offers holiday bonuses.

The company usually gives bonuses to its employees during December. If you're a full-time worker, you will get $300, while part-time workers receive $150.

What is peak pay at Amazon? ›

For the past two years, workers said, they would receive an additional $3 per hour during peak season.

What holidays is Amazon closed? ›

There are a select few holidays each year that Amazon shuts down its deliveries: New Year's Day, Martin Luther King Jr. Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Does Amazon work on Thanksgiving? ›

The only day the building is closed is Christmas. Yes all holidays are work days.

Do you get paid your first week at Amazon? ›

First paycheck would be the following week after your training. Pay periods are bi-weekly, on your first paycheck it would most likey only include he hours for your training.

What classes does Amazon pay for? ›

Your education is on us

It helps fund tuition for associates looking to complete a high school diploma, GED, Bachelor's degree, and English as a Second Language (ESL) proficiency certifications.

Does Amazon negotiate salary? ›

Amazon Initial Equity Package

Equity compensation is a central part of Amazon's total comp philosophy, and it's fully negotiable. It's actually where our clients have made some of the largest improvements in their compensation when we guided them through their salary negotiation with Amazon.

How much does level 4 amazon pay? ›

As of Mar 6, 2023, the average annual pay for an Amazon Level 4 in the United States is $66,736 a year. Just in case you need a simple salary calculator, that works out to be approximately $32.08 an hour.

How often does Amazon give vacation? ›

Amazon Vacation & Paid Time Off

6 national holidays and 20/21 days off per year--including personal and sick days. You'll also get emails from Andy Jassy virtue signaling to employees to take their own days off to celebrate Juneteenth, rather than actually giving employees another day off.

What is Amazon vacation time? ›

Amazon's PTO and Vacation policy typically gives 20-30 days off a year with 74% of employees expected to be work free while out of office. Paid Time Off is Amazon's most important benefit besides Healthcare when ranked by employees, with 32% of employees saying it is the most important benefit.

Does PTO reset every year? ›

A company gives its employees a set amount of PTO hours, which reset annually. Some employers reset PTO hours by hire date; others reset them on January 1.

Can you work 2 shifts a day Amazon? ›

Yes you can work second shift at amazon.

Can you work more than 60 hours a week at Amazon? ›

During peak, this jumps to six 10-hour day shifts or five 12-hour night shifts, for a total of 60 hours. US labor law permits employers to require employees to work unlimited amounts of overtime, as long as they are paid 1 1/2 times their regular rate of pay. Companies have a right to fire workers who refuse.

Can you go over 60 hours a week at Amazon? ›

So TL;DR: Yes. A full time Amazon employee CAN work 80 hours per week, although it's not really a regular occurrence.

Does Amazon excuse absences? ›

Students are expected to attend all assigned classes each day. School staff will keep a record of absence and tardiness, including a call log and/or a record of excuse statements submitted by a parent/guardian or, in certain cases, students, to document a student's excused absences.

Does Amazon pay extra for night shifts? ›

Amazon Night Shifts

Evening and overnight shifts typically start between 6.00 p.m. and 8.00 p.m. and end between 5.00 a.m. and 7.00 a.m. Among other advantages, most of these shifts earn more per hour, too. More pay – Most of these shifts pay more per hour, and this adds up quite a bit as time goes on.

What if I miss a day of work at Amazon? ›

You would have to call the ERC( EMPLOYMENT RESOURCE LINE). Amazon operates on a point system. Just as long as you don't exceed the points you are good. Talk to your group manager before you miss work if possible, call in asap and apply Unpaid Time Off if you have it.

Will current Amazon employees get $18 an hour? ›

Average hourly pay for employees in customer fulfillment and transportation will increase from $18 per hour to more than $19 per hour, with employees earning between $16 and $26 per hour depending on their position and location in the U.S.

How much does a Tier 3 make at Amazon? ›

The estimated total pay for a Tier III Process Assistant at Amazon is $58,642 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $46,912 per year.

Is it easy to get promoted at Amazon warehouse? ›

Getting a promotion at Amazon isn't easy. Indeed, some say the process is brutal. And moving up may have more do to with your boss's ability to present your case than how well you actually perform your job.

Do Amazon employees get incentives? ›

Eligible employees receive a discount code for a 10% discount off of Amazon merchandise. Additionally, employees can participate in the employee discount program which provides you with a discount on a variety of services such as travel, tickets to event, cell phone service, restaurants, and more.

Does Amazon match 401k contributions? ›

Amazon 401(k) Plan

For every $1 of employee contribution you make (up to 4% of your eligible pay), Amazon will contribute $0.50 to your account in the form of matching contributions. You can get up to a 2% match.

How do I activate my Amazon employee discount? ›

Go to your Amazon atoz, and go to your profile, there should be a discount code, put that into Amazon when you check out, and it'll stay there for the whole year. You can't let anyone else use it. And it's only for blue badge employees. What are the current coupon discounts that I can enjoy for Amazon?

How long do you have to work at Amazon to get benefits? ›

Starting on your first day of employment, Amazon offers a wide range of benefits to support you and your family at home and beyond.

Do Amazon workers get free Prime? ›

Do Employees Get a Discount on Amazon Prime? Unfortunately, NO. Employees are stuck paying full price for a Prime Membership.

Does Amazon give phone to employees? ›

No Amazon generally does not provide you a company phone, at least not when I was there. Most companies I've worked for wouldn't provide a work phone and there's no explicit expectation that you read or answer work e-mails on your phone.

How much does a level 7 at Amazon make? ›

Amazon L7 Information Technologist Salary | $386K-$500K+ | Levels. fyi.

Who has the best benefit package? ›

  1. 1. Facebook. Facebook offers some of the best benefits available, and they aren't limited to salaried employees. ...
  2. Netflix. Netflix also offers great benefits, especially for parents and new or growing families. ...
  3. Hubspot. ...
  4. BetterUp. ...
  5. Google. ...
  6. Amazon. ...
  7. Starbucks. ...
  8. Microsoft.
Sep 2, 2022

How much does a Level 4 at Amazon make? ›

As of Mar 6, 2023, the average annual pay for an Amazon Level 4 in the United States is $66,736 a year. Just in case you need a simple salary calculator, that works out to be approximately $32.08 an hour.

What is the best Amazon to work at? ›

Best Amazon Jobs
  • Learning Specialist I. Average Salary: $72K-$107K. ...
  • Technical Writer. Average Salary: $98K. ...
  • Software Engineer. Average Salary: $115K. ...
  • Senior Technical Recruiter. Average Salary: $116K. ...
  • Security Engineer. Average Salary: $120K. ...
  • Data Scientist. Average Salary: $120K. ...
  • Art Director. ...
  • Principal Product Manager.
Aug 15, 2022

How much does Amazon pay Level 1? ›

The estimated total pay for a Associate Level I at Amazon is $41 per hour. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $32 per hour.

What does Amazon Level 6 mean? ›

Amazon equates years of experience with each level as follows: Level 4: 1-3 Years of Experience. Level 5: 3-10 Years of Experience. Level 6: 8-10+ Years of Experience.

Are benefits worth more than salary? ›

According to the Glassdoor survey, 80% of employees prefer additional benefits over a pay increase. Employees are starting to prioritize the benefits they would receive from a company over salary because employee benefits provide better experience and helps increase their job satisfaction.

How much does a benefits package add to your salary? ›

The average benefits package is over 30% of an employee's compensation.

Are benefits better than higher pay? ›

With higher pay, you will have greater immediate purchasing power. On the other hand, better benefits may improve your lifestyle in ways that the additional purchasing power cannot compensate for. In the end, the main thing to consider is how important having more money in your paycheck is compared to other perks.

How long does it take to become an l4 at Amazon? ›

1+ years of employee and performance management experience. Bachelor's degree, or 2+ years of Amazon (blue badge/FTE) experience.

Which Amazon warehouses pay the most? ›

Highest paying cities for Warehouse Worker in US
  • Portland, OR. $19.13 per hour.
  • Phoenix, AZ. $16.67 per hour.
  • Columbus, OH. $18.13 per hour.

Which Amazon warehouse position pays the most? ›

Some of the highest wages a worker can make at Amazon Warehouse are in the job titles Warehouse Worker ($37,867), and title Picker Packer ($36,674) which are the highest paying jobs at Amazon Warehouse.

Is Amazon a strict job? ›

Amazon is known for imposing strict time constraints on drivers and tracking how many times they stop and how fast they drive. While the company factors in break times — a 30-minute lunch and two 15-minute breaks — some drivers say they either can't or don't want to take them.

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