Amazon raises minimum pay for warehouse workers to $20/hour

Amazon has announced it will raise the minimum starting pay for its U.S. full-time core operations employees to $20 per hour, marking a $1-per-hour increase for frontline workers involved in sorting, packing, and transporting orders. On average, the new hourly rate will reach nearly $24, with total compensation exceeding $32 when benefits are taken into account. This pay increase represents more than a 17% rise over the past three years.

The announcement coincides with the peak holiday shopping season, as Amazon prepares to ramp up its workforce. According to reports, the company hired 250,000 full-time, part-time, and seasonal workers to support last year's holiday period.

In addition to the pay hike, Amazon introduced two new benefits. Starting October 1, all U.S. Amazon employees will receive a 10% discount on eligible groceries and everyday essentials when shopping on Amazon.com and Whole Foods Market online, and a 20% discount in-store at Whole Foods. This discount can be combined with existing Prime member discounts.

Amazon is also launching a banking benefit called Day 1 Financial, which will provide qualified employees and their families with a lifetime membership in First Tech Federal Credit Union, including low-cost accounts and access to credit cards, auto loans, and home loans, beginning late 2026.