Amazon Raises Starting Minimum Wage to $20 Ahead of Holiday Season
The online retail giant is also enhancing employee benefits, including discounts on groceries and access to financial services.
Amazon is increasing the minimum starting hourly wage for its U.S. full-time core operations employees to $20, effective September 27. This move comes ahead of the critical holiday shopping season.
With this $1-per-hour increase, the average pay for these workers, who are involved in packing and shipping orders, will reach nearly $24 per hour. Including the value of its benefits package, Amazon stated that the average total compensation for these employees will exceed $32 per hour.
In addition to the wage hike, Amazon announced new employee benefits set to roll out starting October 1. All U.S. Amazon employees will receive a 10% discount on eligible fresh groceries and everyday essentials purchased online through Amazon.com and at Whole Foods Market. They will also receive a 20% discount at physical Whole Foods stores. These discounts can be combined with existing Prime member discounts.
Starting later this year, Amazon will also provide eligible employees and their families with a membership in First Tech Federal Credit Union. This membership offers access to low-cost banking services, including accounts with no overdraft or monthly maintenance fees, and does not require prior credit history to open checking and savings accounts.
In comparison, Walmart last year expanded its employee discount program. Hourly store workers at Walmart start at $14 per hour, with the average pay for U.S. hourly employees reaching over $18.50. For Walmart's warehouse and supply network workers, the average hourly wage is $27.50, and the average starting hourly wage is $24.75.