Amazon Boosts US Employee Pay to $20/Hour Amid Rising Labor Costs

Amazon has announced that it is raising its minimum starting pay for U.S. full-time core operations employees to $20 per hour, effective immediately. This represents a 17% increase over the past three years and will result in an additional investment of more than $1.5 billion by the company.

The average total compensation package for Amazon employees now exceeds $32 per hour when including benefits such as healthcare, free Prime membership, and paid parental leave. Additionally, eligible employees can access a new banking benefit called Day 1 Financial, which includes no overdraft fees, monthly maintenance fees, or account minimums on standard checking and savings accounts.

The company is also introducing grocery discounts for U.S. employees starting October 1, 2026, with 10% off eligible items on Amazon.com and Whole Foods Market online, and 20% off in-store at Whole Foods Market. These discounts are uncapped and can be combined with existing Prime member discounts.