Business · updated 1h ago · 2 min read
Amazon Raises U.S. Minimum Starting Pay to $20 an Hour and Adds Whole Foods Discounts
Minimum starting wage for U.S. full-time core operations rises to $20 per hour. Average hourly pay increases to about $24, with total compensation around $32 per hour.
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Pay hike and grocery perks
Amazon announced Wednesday it will increase the minimum starting pay for full-time operations workers to $20 an hour and add grocery discounts for all U.S. workers.
“increase the minimum starting pay for full-time operations workers to $20 an hour”
CBS NewsThe company said the new hourly wage represents a $1 increase from its current starting level and that with the bump average pay will now be $24 an hour for Amazon workers.
About AmazonBeginning Oct. 1, Amazon said all U.S. employees will get 10% off eligible fresh groceries on Amazon.com and the Whole Foods website, and a 20% discount in-store at Whole Foods locations.
Amazon also said it is offering employee memberships with First Tech Federal Credit Union, with the membership starting in late 2026, and that qualified employees, their spouses and their children will qualify for First Tech membership for life.
CBS NewsHow the company frames it
In a blog post, Amazon Senior Vice President Udit Madan wrote, "When we build something like that, we want our teammates to benefit from it just as much as our customers do," as the company expanded its delivery network for fresh groceries over the past decade.
TechCrunch reported that Amazon says the higher pay represents an increase of $1 per hour for eligible employees and that “When you add in the value of our industry-leading benefits, average total compensation comes to more than $32 per hour,” as Madan wrote.
About Amazon UKTechCrunch also said Amazon will provide employees with access to a low-cost banking system called Day 1 Financial, a membership in First Tech Federal Credit Union, and a 20% discount on purchases bought in-store at Whole Foods Market.
Amazon’s announcement tied the wage increase to a broader benefits package that includes free Prime memberships, prepaid education programs, and healthcare coverage, according to TechCrunch.
Rollout and employee impact
Amazon said the grocery discounts take effect on October 1, with the 10% discount applying to eligible fresh groceries and essential items ordered on Amazon.com and the 20% discount applying in-store at Whole Foods locations.
“Day 1 Financial will begin rolling out in late 2026 and is expected to become broadly available in 2027”
Mass Market RetailersThe company also said the First Tech Federal Credit Union membership offering will begin rolling out later this year, and that Day 1 Financial will begin rolling out in phases starting in late 2026 with broad availability in 2027, according to Mass Market Retailers.
In Connecticut, Hartford Business Journal reported that thousands of Amazon employees are set to receive raises as part of a $1.5 billion nationwide investment, with eligible employees receiving an additional $1 per hour and bringing the company’s minimum starting wage for full-time operations positions to $20 an hour.
Hartford Business Journal added that Amazon employs more than 15,000 people and operates 17 facilities across the state, while also noting Amazon is building a 3.2-million-square-foot fulfillment center along the Waterbury-Naugatuck border expected to open in 2027 and employ about 1,000 people.