Amazon is increasing the minimum starting wage for its U.S. full-time core operations employees to $20 per hour as the company prepares for the holiday shopping season, according to ABC News. The $1-per-hour increase will take effect September 27 and applies to employees working in areas such as packing and shipping customer orders.
With the increase, Amazon said average hourly pay for its full-time core operations workforce will reach nearly $24 per hour. When the value of benefits is included, average total compensation will exceed $32 per hour.
Amazon said it is investing more than $1.5 billion in higher pay for U.S. core operations employees as part of the compensation changes. The company noted that its minimum starting pay for these roles has increased by more than 17% over the past three years.
Many of the operations positions covered by the new minimum wage do not require previous experience. Amazon also uses an annual step plan under which eligible employees receive pay increases during their first three years with the company.
The wage increase is being accompanied by several new employee benefits, including grocery discounts across Amazon and Whole Foods Market.
Beginning October 1, every Amazon employee in the U.S. will be eligible for an uncapped 10% discount on qualifying fresh groceries and everyday essentials purchased through Amazon.com and Whole Foods Market online. Employees will also receive 20% off purchases at physical Whole Foods Market stores, including hot bar and salad bar items.
The grocery benefits can be combined with existing Prime member discounts.
Amazon is also introducing a financial-services benefit called Day 1 Financial through First Tech Federal Credit Union.
Qualified Amazon employees and their families will be able to become First Tech members and retain their membership for life, even after leaving Amazon. The program includes standard checking and savings accounts with no overdraft fees, monthly maintenance fees or account minimums. A credit history will not be required to open the accounts.
Members will also have access to thousands of surcharge-free ATMs, up to $300 annually in reimbursement for out-of-network ATM fees, digital banking services and programs designed to help employees build credit and emergency savings.
Day 1 Financial is expected to begin rolling out later in 2026 and become broadly available during 2027.
The new benefits build on Amazon’s existing employee programs, which include free Prime memberships for eligible employees, a 401(k) with company matching, paid parental leave and healthcare options that can cost as little as $5 per week with $5 copays for regular full-time employees.
Amazon also offers Career Choice, an education benefit providing prepaid tuition of up to $5,250 annually through more than 475 education partners.
The compensation changes come as large retailers and logistics companies compete for hourly workers ahead of the holiday season.
For comparison, Walmart said its hourly store workers start at $14 per hour, with an average starting wage of $16 and average hourly pay above $18.50. Walmart’s warehouse and other supply-network employees earn an average of $27.50 per hour, with average starting pay of $24.75.
Amazon’s new $20 national minimum for full-time core operations employees further raises the compensation floor for workers across the company’s large fulfillment and logistics network while the expanded grocery and banking benefits broaden the overall package beyond direct wages.
