Wage rise brings Amazon’s US starting pay to $20 an hour
Amazon has added an uncapped grocery discount for its US employees, expanding benefits alongside a $1 minimum-wage increase that lifts the company’s hourly starting pay to $20.
The grocery benefit gives employees an uncapped 10% off eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market Online, plus 20% off in-store at Whole Foods Market.
The wage increase lifts average company pay to $24 an hour, according to the company.
Udit Madan, Amazon’s senior vice-president of worldwide operations, announced both changes in a blog post.
“We talk a lot about continuous improvement at Amazon—about always wanting to get better, even when things are going well,” Madan wrote. “I’m excited about how these investments work together to help our employees and their families continue to thrive for the long run.”
Amazon has about 1.1 million employees in the United States, the second-largest private employer behind Walmart, according to figures the company has previously cited.
The retailer has also pointed to the creation of 390,000 Amazon delivery service provider jobs, which are operated by contractors.
The new starting pay matches the $20 floor Costco set in 2025, when most of the warehouse club’s workers were raised to more than $30 an hour.
Starting wages at other major retailers remain lower: Target’s entry-level rate is $15 an hour, and Walmart’s is $14 an hour.