Amazon boosts minimum hourly starting wage to $20

Amazon has raised its minimum wage to $20 per hour for its frontline workers in time for the holiday season. This modest increase, which amounts to a $1 raise from the current minimum wage, comes as the tech giant prepares to receive a surge in orders leading up to the busy period. Historically, Amazon has hired an estimated 250,000 additional workers for the holidays, accounting for roughly half of all seasonal hires in the retail industry.

Despite the pay increase, Amazon's average hourly pay for its entire workforce is still around $24. When benefits like a new banking perk and grocery discount are considered, the average total compensation for Amazon employees rises to about $32 an hour. This puts Amazon's pay above the minimum wage in many parts of the country, where legislative changes have increased hourly wages in numerous states and localities.

By the end of 2026, the minimum wage is expected to surpass $15 in 14 states and 65 cities and counties, with some areas reaching $17. Even though Amazon's minimum wage is above the national rate, it remains lower than the compensation offered by competitors like Walmart, Target, and Costco. While Amazon's investment in automation has reduced its workforce in some areas, it has also increased the deployment of robots, potentially leading to fewer job opportunities for workers in the future.