Amazon raises minimum pay to $20/hr and adds Whole Foods discounts for all U.S. workers

Amazon announced Wednesday that it is raising the minimum starting pay for its U.S. operations workers — fulfillment center staff, delivery drivers and others in logistics — by $1 an hour to $20, while rolling out grocery discounts for all U.S. employees and a credit union membership, with the pay change and discounts effective later this year.

The raise brings Amazon's wage floor level with Costco, which also raised its lowest starting pay to $20 an hour in 2025. Both now sit well above Target's $15-an-hour starting wage and Walmart's $14-an-hour floor, according to The Guardian. Amazon is the second-largest private employer in the United States, with about 1.1 million workers domestically, behind only Walmart.

When you add in the value of our industry-leading benefits, average total compensation comes to more than $32 per hour.— Udit Madan, Senior Vice President of Worldwide Operations, Amazon

With the increase, Amazon says average hourly pay across its operations workforce will reach $24 an hour. The company estimates the total investment in the raises exceeds $1.5 billion, according to TechCrunch — roughly 0.06% of its $2.68 trillion market cap.

Starting October 1, all U.S. employees will receive a 10% discount on eligible fresh groceries and everyday essentials ordered through Amazon.com or the Whole Foods Market website, and a 20% discount on in-store purchases at Whole Foods locations, including hot and salad bars. The grocery benefit is described as uncapped. More than 100,000 Whole Foods Market team members will also gain access to Amazon's broader benefits package, according to Amazon's own announcement.

Not everyone is celebrating the Whole Foods perk. On a subreddit for Amazon fulfillment center employees, one worker's reaction to the in-store discount was pointed: the 20% reduction would make Whole Foods prices "cost almost the same as a regular store" — a nod to the chain's longstanding reputation for premium pricing, according to TechCrunch.

Amazon is also offering employees membership in First Tech Federal Credit Union, a banking cooperative that already partners with companies including Intel and Microsoft, starting in late 2026. Notably, the membership extends to employees' spouses and children and remains in effect for life — meaning workers retain access even after leaving the company, according to CBS News.

We talk a lot about continuous improvement at Amazon – about always wanting to get better, even when things are going well. I'm excited about how these investments work together to help our employees and their families continue to thrive for the long run.— Udit Madan, Senior Vice President of Worldwide Operations, Amazon

The new benefits layer on top of existing perks Amazon already provides eligible employees, including free Prime memberships, prepaid education programs, and healthcare coverage. The company, which employs roughly 1.5 million workers globally according to FactSet data cited by CBS News, has also cited the creation of 390,000 Amazon delivery service provider jobs — though those positions are operated by contractors, not direct Amazon employees.

Why it matters — The raise and benefits expansion affect roughly 1.1 million U.S. Amazon workers and reset the wage benchmark for the broader retail and logistics industry, where rivals like Target and Walmart still start workers at $14–$15 an hour.

Reported by cbsnews.com, aboutamazon.com, theguardian.com, techcrunch.com