Amazon raises starting pay to $20 an hour and adds Whole Foods discount

Amazon has increased its minimum wage for US employees to $20 per hour, aligning it with Costco's lowest starting pay. The company's average wage has risen to $24 per hour, a $1 increase from its previous starting level. Amazon is also introducing a new benefit, offering Whole Foods Market shoppers unlimited 10% off on eligible fresh groceries and everyday essentials online, plus 20% off in-store purchases at Whole Foods.

This wage increase brings Amazon's minimum pay in line with Costco, which has also raised its lowest pay to $20 per hour, with most workers earning over $30 per hour. Both retailers offer higher starting pay than most competitors, with Target at $15 per hour and Walmart at $14. Amazon employs about 1.1 million US workers, ranking second among private employers, behind Walmart.

The company has also created 390,000 delivery service provider jobs, operated by contractors. Amazon's senior vice-president of worldwide operations, Udit Madan, emphasized the company's commitment to continuous improvement, stating that these wage investments aim to support employee and family well-being in the long term.