Amazon Invests $1.5 Billion in Higher Worker Pay, Expands Benefits

Amazon is investing over $1.5 billion to increase pay for its US core operations employees, effective immediately. The company will raise minimum starting wages by $1 an hour for eligible employees, bringing the minimum starting wage for full-time core operations roles to $20 an hour nationwide.

Average hourly pay will reach nearly $24, while average total compensation exceeds $32 an hour when benefits are included. This represents a 17% increase in minimum starting pay over the past three years.

Alongside the wage increase, Amazon is introducing Day 1 Financial, a banking benefit offered through First Tech Federal Credit Union. Qualified employees, their spouses and children will be able to retain access to the credit union for life, including after they leave Amazon.

The company also plans to expand grocery benefits for its workforce, offering an uncapped 10% discount on eligible groceries and everyday essentials purchased through Amazon.com and Whole Foods Market online. This discount can be combined with existing Prime member discounts.