Key Takeaways
- Amazon raises minimum hourly pay for eligible U.S. operations workers to $20.
- Average total compensation will exceed $32 per hour, including benefits.
- Amazon adds banking services and grocery discounts for eligible U.S. employees.
Amazon is raising minimum hourly pay for eligible full-time U.S. operations workers by $1 to $20, effective this week, as part of the latest Amazon Minimum Wage increase that adds new employee compensation and benefits.
Amazon raises pay across U.S. operations
Amazon said Wednesday the Amazon Minimum Wage increase applies to full-time employees in its core operations roles across the United States. Many of the positions require no prior experience, the company said.
The increase is part of an investment of more than $1.5 billion in higher pay for U.S. core operations employees. Amazon said average hourly pay for those workers will reach nearly $24.
When the value of benefits is included, average total compensation will exceed $32 an hour, according to the company. Amazon also has an annual step plan that increases pay during an employee’s first three years.
Amazon said its minimum starting pay has increased more than 17% over the past three years. The company has continued to expand pay and benefits for its large U.S. frontline workforce.
New banking benefit gives workers lifetime access
Alongside the pay increase, Amazon announced a new financial benefit called Day 1 Financial.
The program gives qualified employees, their spouses and their children lifetime access to banking services through First Tech Federal Credit Union. Amazon said the benefit will begin rolling out late this year and become broadly available in 2027.
The program includes checking and savings accounts with no monthly maintenance fees, no overdraft fees and no minimum balance requirements. Employees will also have access to thousands of surcharge-free ATMs and up to $300 a year in reimbursement for out-of-network ATM fees.
Amazon said the benefit is intended to give workers additional tools to manage money and build savings. It builds on Brightside Financial Care, a free service that connects employees with financial assistants.
More than 150,000 hourly Amazon employees have used Brightside since 2022, the company said.
Amazon adds grocery discounts for U.S. employees
Amazon is also adding grocery discounts for all U.S. employees starting Oct. 1.
Employees will receive an uncapped 10% discount on eligible groceries and everyday essentials purchased through Amazon.com and Whole Foods Market online. The discount will rise to 20% for eligible purchases made in Whole Foods Market stores.
The new benefits add to Amazon’s existing employee offerings, including health care for as little as $5 a week for eligible workers, a free Prime membership and prepaid education programs.
The new Amazon Minimum Wage also places Amazon’s minimum starting pay alongside some major U.S. retailers. Costco raised its minimum wage for entry-level workers to $20 an hour last year, while Walmart lists starting hourly pay at $14 and Target at $15, according to company information cited by Reuters.
Amazon said the changes are designed to help employees and their families make more of their earnings. The company has not announced a separate increase to its minimum pay for workers outside the eligible U.S. operations group.
