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Amazon Raising Starting Pay to $20 an Hour and Adding Whole Foods Perks, Company Says
Amazon said the increase is backed by a $1.5 billion investment and will lift average total compensation for full-time operations workers above $32 an hour.
On Wednesday, September 16, 2026, Amazon announced it is raising minimum starting pay for U.S. operations employees to $20 per hour, backed by a $1.5 billion investment.
Retail competitors set lower benchmarks; Walmart's U.S. workers start at $14 per hour while Target offers a $15 minimum, positioning Amazon's move as a competitive labor market response.
New employee perks include "Day 1 Financial," providing lifetime access to First Tech Federal Credit Union banking services, and a 20% discount on in-store purchases at Whole Foods Market.
Average total compensation for eligible full-time employees will exceed $32 per hour when benefits are included, Amazon Senior Vice President Udit Madan stated, with average hourly pay reaching nearly $24.
Building on existing perks like free Prime memberships, the company leverages its expanded grocery delivery network to compete with major retailers like Costco in the fresh food sector.