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Starbucks Is Increasing Hourly Wages, Benefits for Employees Again — But Not All Workers Are Eligible The coffee giant last increased wages for hourly employees in 2022.

By Emily Rella

Working at Starbucks is about to become a whole lot sweeter — and it has nothing to do with the sugary drinks.

The coffee giant announced on Monday that starting January 1, eligible employees will receive a 3% to 5% hourly wage increase depending on how many years of service they've given to the company.

Retail hourly "partners" (Starbucks' internal word for its employees) in the U.S. will see "at least a 3% increase" in wages. Employees who have been with the company for 2-5 years will see a 4% increase and those who have been with Starbucks for five or more years are set to see a 5% increase.

Related: What Are Starbucks New Holiday Drinks for 2023? See New Menu

Barista ranges are between $15 and $24 per hour, thanks to wage increases that the chain implemented in 2022. On average, hourly retail workers for the company receive a wage of $17.50 per hour.

Starbucks said in a statement that the increases allow the company to continue "serving the best benefits across the industry for hourly retail work."

Newly hired employees will also see faster PTO accrual starting January 1, with new workers being able to start accruing time off just 90 days after initially being hired.

"Investing in our partners is what drives our success. It's what makes us all partners," said Sara Trilling, executive vice president and president of Starbucks North America, in a company release. "And an important way we do this is by investing in our partners' journey, to bridge to a better future at Starbucks and beyond."

Related: Starbucks Faces Class Action Lawsuit Over 'False' Marketing

There is a catch, however.

Workers who have unionized will not be entitled to all of the new benefits. An estimated 366 Starbucks stores have voted to unionize in the U.S. since 2021.

Starbucks is coming off of a strong Q4 2023, with net sales increasing 11.4% to $9.37 billion.

The coffee giant was up just under 14.5% year over year as of Tuesday afternoon.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

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