Amazon is raising the minimum hourly pay for eligible full-time operations workers in the United States by $1 to $20, the company said Wednesday as it also announced new financial benefits for employees and their families
The increase brings Amazon’s minimum starting pay for the affected operations roles to $20 an hour. The company said average total compensation will exceed $32 an hour when the value of employee benefits is included.
The move covers eligible full-time workers in Amazon’s U.S. operations. The company did not specify in the Reuters report how many employees will receive the increase.
New financial benefit for Amazon workers
Alongside the wage increase, Amazon announced a new benefit called “Day 1 Financial.”
The program will give qualified employees and their families lifetime access to low-cost banking services through First Tech Federal Credit Union, according to the company. Amazon said the new benefit is intended to provide employees with access to financial services beyond their time at the company.
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The company already provides benefits including health care coverage for as little as $5 per week, free Prime membership for eligible employees and prepaid education programs.
Amazon increases pay as retail wages remain competitive
Amazon’s latest wage increase comes after years of higher pay for its U.S. hourly workforce.
In 2018, Amazon raised its companywide minimum wage to $15 an hour. In 2024, it announced an investment of more than $2.2 billion to increase pay and benefits for hourly fulfillment and transportation workers. This brings average base pay for those employees to more than $22 an hour and average total compensation to more than $29 an hour.
The latest increase also places Amazon’s minimum starting pay at the same $20-an-hour level that Costco set for entry-level workers last year, according to Reuters. Walmart’s U.S. hourly workers start at $14 an hour, while Target’s minimum hourly wage is $15, Reuters reported, citing company websites
Amazon’s announcement comes as major U.S. retailers continue to compete for hourly workers through wages and benefits.
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For Amazon, the latest pay increase adds to its broader compensation package for frontline operations employees, who support its fulfilment and delivery network across the country.
What the increase means
At $20 an hour, a full-time employee working 40 hours a week would earn about $41,600 a year in base wages before taxes and excluding overtime, bonuses and benefits.
The company said average total compensation, including benefits, will exceed $32 an hour. That figure is different from the $20 minimum hourly wage because it includes the value of the broader benefits package.
Amazon’s latest move therefore combines a direct increase in hourly wages with additional benefits, including the new lifetime banking access for qualified workers and their families. The company has continued to expand its compensation and benefits offerings for its large U.S. hourly workforce as it competes with other major employers for workers.