Amazon announced plans to increase the minimum starting wage to $20 per hour for eligible full-time US core operations employees, alongside expanded benefits and grocery discounts.
The company stated it will invest $1.5bn to implement a $1 hourly wage increase and an annual step-plan pay increase throughout an employee’s first three years.
Amazon said the average hourly pay for affected workers will approach $24, with average total compensation exceeding $32 per hour when including the value of benefits.
The company specified that the pay increase and benefits rollout are expected to begin in late 2026, with broad availability planned for 2027.
According to the business, these new benefits apply to eligible full-time employees within the company’s core operations segment in the US.
However, no details were provided on eligibility criteria beyond this designation. In addition to wage increases, Amazon revealed grocery discounts starting October 1, 2026.
Eligible employees will receive uncapped 10 per cent discounts on fresh groceries and everyday essentials purchased online through Amazon.com and Whole Foods Market.
Additionally, at Whole Foods Market physical locations, eligible employees will be offered uncapped 20 per cent discounts, which will include hot and salad bars.
Amazon’s announcement is positioned as a significant investment in its workforce, aiming to improve compensation and access to financial services for core operations staff.
The $1.5bn figure represents the scale of the planned wage and benefit enhancements targeted at improving employee compensation and support over the coming years.
This comes after the online ecommerce platform recently expanded its Career Choice program and raised the wages at Whole Foods Market.
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