Other Starbucks’ employee benefit efforts include partner-centric scheduling and the launch of the North America Barista Championship. Credit: © Starbucks Corporation.

Starbucks has announced plans to increase the hourly pay of its employees at its stores in the US by at least 3%, with effect from 1 January 2024.

An increase of at least 4% is being implemented for eligible workers with two to five years of service.

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Workers with five or more years of service at Starbucks-operated US stores will be eligible for at least a 5% pay increase.   

Apart from increase in pay, Starbucks has also announced various other benefits for its US employees, including shorter vacation accrual eligibility for hourly employees starting from February 2024.

Employees with just 90-days in service can avail vacation accrual.

From January 2024, the company said that all eligible US retail hourly partners will be able to sign up to receive the new Siren Card, an exclusive card for Starbucks partners offering a high-tech banking experience.

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Through this card, the company aims to boost the financial wellness of its employees.

Other partner benefit efforts include partner-centric scheduling and the launch of the North America Barista Championship in February 2024.

Starbucks North America president and executive vice-president Sara Trilling said: “Investing in our partners is what drives our success. It is what makes us all partners.

“And an important way we do this is by investing in our partners’ journey, to bridge to a better future at Starbucks and beyond. This entails engaging with, and listening to, their ideas and feedback while continuing to raise [the] bar by offering competitive pay and [the] best benefits package in industry.”

Last year, the coffeehouse chain increased the wages of US retail hourly employees to $15 per hour.

Starbucks said it offers an average wage of approximately $17.50 per hour to its US hourly retail partners, while a barista receives between $15 and $24 per hour and around $27 per hour in total compensation, with benefits.

According to a CNBC report, Starbucks employees were receiving $14 an hour in 2021. A new pay floor of $15 an hour was implemented from May 2022, while employees in some markets could earn up to $23 an hour.