Amazon Raises Minimum Starting Pay To $20 An Hour For U.S. Workers

Seattle, WA (BuzzReport) — Amazon is raising the minimum starting wage for eligible full-time employees in its U.S. core operations to $20 per hour, marking another major increase in pay for the company’s frontline workforce.

The company announced Wednesday, September 16, that the $1-per-hour increase will take effect September 27, 2026. Amazon says the move represents an investment of more than $1.5 billion in higher pay for U.S. core operations employees. 

The increase applies to full-time core operations positions, many of which do not require previous experience. Amazon says the average hourly wage for workers in these roles will rise to nearly $24 per hour, while average total compensation, including benefits, will exceed $32 per hour. 

For an employee working 40 hours a week, a $20 hourly wage represents approximately $41,600 in annual base pay before taxes, assuming year-round full-time employment. The actual annual earnings of individual employees can vary depending on hours, overtime, position, location and other factors.

Amazon Expanding Employee Benefits

The wage increase is part of a broader package of changes Amazon says is designed to help employees stretch their earnings further.

Beginning October 1, U.S. Amazon employees will receive an uncapped 10% discount on eligible groceries and everyday essentials purchased through Amazon.com and Whole Foods Market online, along with a 20% discount on eligible in-store Whole Foods purchases. The company says the discount can be combined with existing Prime member discounts. 

Amazon is also preparing to roll out Day 1 Financial, a banking benefit through First Tech Federal Credit Union. The program is expected to begin rolling out late this year and become broadly available in 2027. Amazon says qualified employees and their families will have access to checking and savings accounts without monthly maintenance or overdraft fees, among other financial services. 

The new benefits come on top of existing programs that Amazon says include healthcare beginning on the first day for eligible full-time employees, a company 401(k) match, prepaid education through its Career Choice program, paid parental leave and other benefits. 

Another Major Pay Increase

Amazon has been increasing compensation for its operations workforce in recent years. The company said its minimum starting pay has increased by more than 17% over the past three years. In 2025, Amazon announced that average pay for its fulfillment and transportation employees would rise above $23 per hour, with average total compensation exceeding $30 per hour when benefits were included. 

The latest announcement comes as employers across the country continue to face questions about wages, inflation and the cost of housing, food, transportation and other necessities.

For Amazon workers, the additional dollar per hour could mean hundreds or thousands of dollars more in gross earnings over the course of a year, depending on how many hours they work.

Amazon says the latest investment is part of its broader effort to increase compensation and provide additional financial support to its employees and their families.