Amazon Raises U.S. Warehouse Starting Pay to $20 an Hour

Amazon announced Wednesday that it will raise the minimum starting wage for full-time core operations employees in the United States to $20 per hour, a $1 increase effective Sept. 27. The company said the move brings average hourly pay for these workers to nearly $24, while average total compensation including benefits exceeds $32 an hour.

The retailer estimates the higher wages and new benefits represent an investment of more than $1.5 billion. Eligible employees will gain an additional $2,080 annually before taxes based on a 40-hour work week.

“The pay increase is effective starting Sept. 27, the retailer said.”

Starting Oct. 1, all U.S. employees will receive a 10% discount on eligible groceries and essentials ordered online through Amazon.com and Whole Foods Market, plus a 20% discount at Whole Foods physical stores. The discounts can be combined with existing Prime member offers.

Amazon is also rolling out access to First Tech Federal Credit Union membership for qualified employees and their families, providing low-cost banking services without overdraft or monthly maintenance fees. The financial benefit becomes available later this year.

The pay increase arrives as Amazon ramps up hiring for the holiday shopping season, a period when the company historically adds hundreds of thousands of seasonal workers. The new $20 floor matches Costco's starting wage and exceeds the federal minimum, though it remains below the $21-plus minimum in Seattle, where Amazon is headquartered.

Rivals Walmart and Target report average frontline hourly pay around $18.50, with starting ranges varying by location. Meanwhile, Amazon continues to invest heavily in warehouse automation, raising questions about long-term staffing levels even as it boosts compensation.