Amazon Hikes Minimum Wage to $20 Hour Amid Competitive Labor Market

Amazon has announced that it will raise its minimum starting wage for full-time U.S. operations employees to $20 an hour, effective September 27th. This represents a $1 per hour increase and is part of a more than $1.5 billion investment by the company.

The average pay for warehouse workers who sort, pack, and ship orders will now reach nearly $24 an hour. The company's minimum starting pay has risen over 17% in the past three years, from its initial rate of $15 an hour set in 2018.

In addition to the wage increase, Amazon is introducing a new grocery discount for all U.S. employees on October 1st. This includes a 20% discount on in-store purchases at Whole Foods Market and a 10% off eligible groceries and everyday essentials on Amazon.com.

The company is also launching a new banking benefit called 'Day 1 Financial', in partnership with First Tech Federal Credit Union. Qualified employees, along with their spouses and children, will receive a lifetime membership with the credit union, which includes benefits such as no overdraft fees, no monthly maintenance fees, and no account minimums on standard checking and savings accounts.