Amazon Matches Costco Pay with Wage Hike and New Employee Discounts
Amazon has raised its minimum wage in the US to $20 an hour, matching that of competitor Costco. The e-commerce giant's average pay now reaches $24 an hour, with the increase part of a broader effort to improve employee benefits.
The company is expanding employee perks to include uncapped 10% discounts on eligible fresh groceries and everyday essentials at Amazon.com and Whole Foods Market Online, as well as 20% off in-store at Whole Foods. This move brings Amazon's starting pay in line with Costco, which raised its lowest starting wage to $20 an hour in 2025.
Amazon has about 1.1 million employees in the US, making it the second largest private employer behind Walmart. The company also cited the creation of 390,000 Amazon delivery service provider jobs operated by contractors.