Retail giant Amazon announced on Wednesday (September 16) that it is increasing the minimum hourly wage for its full-time core operations staff in the United States to $20.
This pay raise is targeted at frontline employees of the e-commerce company responsible for sorting, packaging, and transporting orders, with their hourly wages being raised by $1.
Amazon stated that after adjusting their wages, the typical hourly pay for these frontline workers will increase to nearly $24, and with benefits included, their total hourly compensation will exceed $32. The company claimed that its minimum starting wage has increased by over 17% in the past three years.
In addition to the pay raise, Amazon also announced two new benefits. Starting October 1, all Amazon employees in the U.S. can enjoy discounts on groceries purchased through the company: a 10% discount when buying eligible groceries and daily essentials on Amazon.com and Whole Foods Market websites, and a 20% discount when shopping at physical Whole Foods Market stores. Amazon stated that this new discount can be stacked with existing Prime member discounts.
Amazon also mentioned that the company is introducing a new banking benefit, offering membership to the U.S. federally chartered credit union “First Tech Federal Credit Union” to eligible employees and their families. This allows them to enjoy low-cost banking services provided by the financial institution for life, including no overdraft fees, no monthly maintenance fees, and no minimum balance requirements, as well as the ability to apply for credit cards, auto loans, and mortgages if eligible. Amazon refers to this banking benefit as “Day 1 Financial,” which is set to launch at the end of 2026 and is expected to be widely available to employees by 2027.
As Amazon raises wages for its employees and introduces new benefits, it coincides with the upcoming holiday shopping season in the United States, during which the company will be hiring a significant number of employees to handle the surge in online orders. Last year, Amazon planned to hire 250,000 new employees before the holiday season, including full-time, part-time, and seasonal workers.
Previously, Amazon has provided employees with various benefits, such as a minimum of $5 weekly medical insurance, free Prime membership, and prepaid education programs.
According to information on the Walmart and Target websites, the minimum hourly wages for employees at these two retail giants in the U.S. are $14 and $15, respectively. Costco’s annual report revealed that the company raised the minimum wage for its entry-level employees to $20 per hour last year.