Amazon Boosts U.S. Worker Pay to $20 an Hour, Invests Over $1.5 Billion

Amazon has announced a significant increase in its minimum starting pay for U.S. core operations workers, including delivery drivers and fulfillment center employees. The new hourly wage will be $20 per hour, up from an undisclosed previous rate, with average hourly pay increasing to nearly $24 per hour. This represents a raise of $1 per hour for eligible employees.

The total investment in these raises amounts to over $1.5 billion, which is approximately 0.06% of Amazon's $2.68 trillion market cap. The company notes that when combined with industry-leading benefits, average total compensation comes out to more than $32 per hour.

Amazon has also introduced a new low-cost banking system called Day 1 Financial and a membership in First Tech Federal Credit Union for its employees. Additionally, workers will receive a 20% discount on purchases made in-store at Whole Foods Market, which Amazon owns, and a 10% discount when ordering groceries online via Amazon.