Amazon is raising the minimum starting wage for full-time U.S. core operations employees to $20 an hour from September 27, a $1 increase.
The company said average hourly pay for the workers will reach nearly $24, while average total compensation including benefits will exceed $32 an hour.
Amazon is also adding grocery discounts and banking benefits as retailers compete to attract and retain workers ahead of the holiday shopping season.
Amazon Raises Minimum US Hourly Pay To $20 Ahead Of Holiday Season
The pay hike, effective September 27, will lift the average hourly wage for these employees to nearly $24, the company said Wednesday
Summary
Amazon is raising the minimum starting hourly wage for its full-time U.S. core operations employees to $20, giving workers a $1-an-hour increase ahead of the crucial holiday shopping season.
The pay hike, effective September 27, will lift the average hourly wage for these employees to nearly $24, the company said Wednesday. Amazon said average total compensation, including benefits, will exceed $32 an hour.
The employees covered by the increase include workers involved in packing and shipping customer orders.
Amazon Adds Grocery Discounts, Banking Benefits
Amazon also announced new benefits for its U.S. workforce, including discounts on groceries and everyday essentials.
Starting October 1, all Amazon employees in the U.S. will receive a 10% discount on eligible fresh groceries and everyday essentials purchased through Amazon.com and Whole Foods Market online. They will also get 20% off at physical Whole Foods stores.
The discounts can be combined with existing Prime member offers, Amazon said.
Later this year, eligible employees and their families will also gain access to membership at First Tech Federal Credit Union. The membership will provide access to banking services without overdraft or monthly maintenance fees, while employees will not need a credit history to open checking and savings accounts.
How Amazon’s Pay Compares With Walmart
Amazon’s latest wage increase comes as major retailers compete to attract and retain workers ahead of the holiday shopping season.
Walmart expanded its 10% employee discount last year to cover nearly all grocery purchases at its stores and online. Previously, the discount covered fresh groceries and general merchandise but excluded items such as milk, pasta and meat, except during the November and December holiday period.
Walmart said its starting pay for hourly store workers is $14, while the average hourly starting wage is $16. Its U.S. hourly employees earn more than $18.50 per hour on average.
(With AP Inputs)
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