Amazon announced Wednesday that it is raising the minimum starting pay for full-time core operations employees in the United States to $20 an hour. The $1 hourly increase applies to workers in fulfillment centers, logistics, and similar roles that handle packing, shipping, and transporting orders.

The move lifts average hourly pay for these employees to nearly $24, with total compensation including benefits exceeding $32 per hour on average. Amazon is investing more than $1.5 billion in the higher wages across its U.S. workforce.

The wage adjustment comes ahead of the holiday shopping season, when the company typically ramps up hiring to manage increased order volumes. Last year Amazon hired 250,000 full-time, part-time, and seasonal workers for the peak period.

Amazon noted that its minimum starting pay has risen more than 17 percent over the past three years. The company also offers an annual step plan that provides pay increases during an employee's first three years.

In addition to the wage hike, Amazon introduced new benefits for U.S. employees. Starting October 1, workers will receive a 10 percent discount on eligible groceries and everyday essentials ordered through Amazon.com or Whole Foods Market online, along with a 20 percent discount on in-store purchases at Whole Foods. Employees will also gain access to banking services through a membership in First Tech Federal Credit Union, including no overdraft fees or minimum balances on standard accounts.

The new minimum pay aligns Amazon's starting wage with Costco, which raised its lowest rate to $20 an hour in 2025. By comparison, Walmart starts U.S. workers at $14 an hour and Target at $15 an hour.

Amazon employs roughly 1.1 million people in the United States and ranks as the second-largest private employer after Walmart. The company stated that the changes build on existing offerings such as free Prime memberships, low-cost health coverage, and prepaid education programs.