Amazon raises U.S. hourly starting wage to $20 and adds new grocery and banking benefits.
Amazon announced Wednesday that it is increasing the minimum hourly starting wage for full-time core operations employees in the United States by $1 to $20 per hour. Starting in October, all U.S. Amazon employees will receive an uncapped 10% discount on groceries and essentials bought online through Amazon.com or Whole Foods Market, and a 20% discount when shopping in Whole Foods stores. The company said the higher base pay lifts the average starting wage to about $24 per hour, and its new Day 1 Financial banking benefit will be introduced later this year and become widely available by 2027.
The Day 1 Financial benefit gives employees a membership in First Tech Federal Credit Union that carries no overdraft fees, no monthly maintenance fees, and no minimum balance requirements for standard checking and savings accounts. Through the same program, workers can apply for auto and home loans, and the service does not require a credit history to open an account. The grocery discount is uncapped and can be combined with any existing Prime member discounts, and all Amazon employees already receive a complimentary Prime membership. This new banking layer supplements Amazon’s current Brightside Financial Care service, which provides employees with free access to a financial assistant for budgeting, debt planning, and other money‑management tasks.
“A consumer spending slowdown is likely later this year and into early 2027 as middle-income and lower-income households feel the pinch from higher gas and grocery prices,” Navy Federal Credit Union’s Chief Economist Heather Long said in emailed comments Wednesday after monthly retail sales data was released. “Real incomes are flat or declining for many and they will have to cut back on something,” Navy Federal Credit Union’s Chief Economist Heather Long said.
Earlier this year, inflation began to rise faster than wages, especially for groceries and fuel, putting pressure on household budgets. While retail spending has remained re
What we know
Amazon is raising pay by $1 per hour for eligible employees, making its core operations full-time employee minimum starting wage $20 per hour, the e-commerce giant announced Wednesday.
Additionally, all Amazon employees in the U.S. will have access to new grocery benefits starting in October.
That includes an uncapped 10% off eligible grocery and everyday essentials on Amazon.com and Whole Foods Market online, plus 20% off in Whole Foods stores.
The increased minimum starting wage at Amazon bumps its average starting wage to about $24 per hour, the company says.
The company’s new financial benefit will roll out later this year and become broadly available in 2027.