Facebook raises minimum wage for US contract workers to $20

15 May, 2019 12:00 AM printer

NEW YORK: Facebook Inc said on Monday it was raising its minimum wage for all U.S. contract workers, reacting to rising costs of living as it faces intense scrutiny over the treatment of ordinary employees and their pay.

The company raised its minimum wage to US$20 per hour in the San Francisco Bay Area, New York and Washington D.C. and to US$18 per hour in Seattle. It said it was clear that US$15 an hour would not now meet the needs of the workers it employs through third-party contractors as cooks, cleaners, security guards or drivers, report agencies.

The world's largest social media company also said https://newsroom. fb.com/news/2019/05/compensating-and-supporting-contractors it will pay at least US$22 per hour for content reviewers in the Bay Area, New York City and Washington, D.C., US$20 per hour to those living in Seattle and US$18 per hour in all other metro areas in the United States.

"After reviewing a number of factors including third-party guidelines, we're committing to a higher standard that better reflects local costs of living," the social media giant said in a blog post.

Facebook last raised minimum wages for contract workers in 2015 to US$15 per hour in its bid to narrow the widening gap between the technology sector's elite and the lower-paid workers.

It said it would be implementing the changes announced on Monday by the middle of next year and was working to develop similar standards for other countries.

Last year, Amazon.com Inc raised its minimum wage to US$15 an hour after facing criticism over poor pay and working conditions. The online retailer said at the time that it would lobby Washington for the federal minimum wage to be raised.

Silicon Valley is under pressure to close the income gap given California's high cost of living. The Office of Labor Standards Enforcement said it raised the minimum wage in San Francisco to US$15.59 per hour beginning July 1.