Amazon is giving its US frontline workers a major financial boost, with a new $20 (£14.96) minimum starting wage and a 20% discount on eligible in-store purchases at Whole Foods Market and Daily Shop.
The pay increase will lift Amazon's minimum starting rate for full-time core operations employees by $1 an hour, while workers will also gain access to new grocery savings from 1 October. The company is also introducing a new financial benefit that will give eligible employees and their families lifetime access to a credit union.
The changes form part of a broader package of pay and benefits Amazon says is designed to give its frontline workforce more financial support. The $20 minimum wage takes effect on 27 September 2026, while the new grocery discounts begin four days later.
Amazon Raises Starting Pay to $20 an Hour
Full-time core operations employees across the United States will receive a starting wage of at least $20 (£14.96) an hour, up from the previous $19 (£14.21) minimum.
According to Amazon, typical wages for its US operations employees are close to $24 (£17.94) an hour, while overall compensation exceeds $32 (£23.92) an hour when benefits are included. The company also said baseline starting wages have increased by more than 17% over the past three years.
Amazon raises minimum starting pay for full-time core operations employees to $20/hour, with average pay reaching nearly $24/hour, and launches grocery discount and access to new lifetime banking benefits, making everyday life more affordable https://t.co/3UyTiB2RXA
— Amazon News (@amazonnews) September 16, 2026
The new pay structure also includes a mechanism for further increases during an employee's first three years.
'We also have an annual step plan where pay increases the first three years someone is with us, providing a clear path for how their pay can grow over time,' Udit Madan, the senior vice president for Amazon's worldwide operations, wrote in a blog post.
Workers Get New Grocery Discounts
Starting 1 October, US employees will gain access to new shopping perks that could reduce the cost of eligible groceries and everyday essentials.
Employees will receive a 10% discount on eligible groceries and everyday essentials purchased online through Amazon.com and Whole Foods Market Online. The discount rises to 20% for eligible in-store purchases at Whole Foods Market and Daily Shop.
Amazon has outlined separate rules for the online and in-store savings. Orders through Amazon.com qualify for a 10% discount on qualifying groceries and everyday essentials sold directly by Amazon. Whole Foods Market Online purchases also receive a 10% discount on eligible delivery orders, including catering orders.
Meanwhile, eligible in-store purchases at Whole Foods Market and Daily Shop qualify for the 20% discount. Gift cards and alcoholic drinks are excluded.
Workers can also combine the discount with other eligible savings, including Prime savings, digital coupons, Lightning Deals and Subscribe & Save.
Amazon Adds Lifetime Credit Union Membership
Amazon is also introducing a new financial perk through its Day 1 Financial benefit.
Qualified employees, along with their spouses and children, will receive lifetime access to First Tech Federal Credit Union. The benefit will begin rolling out in late 2026 before becoming broadly available in 2027.
The new package puts Amazon's starting wage alongside pay figures reported by other major US retailers.
Walmart reports that a frontline associate earns more than $18.50 (£13.83) an hour on average, while supply chain staff earn an average of $27.50 (£20.56) an hour.
Similarly, Target says its frontline team members earn more than $18.50 (£13.83) an hour on average. The company's starting pay ranges from $15 to $24 (£11.21 to £17.94) an hour, depending on the role and location.
Amazon's Latest Perks Follow Earlier Labour Tensions
The latest changes follow a similar wage increase and reduction in health care costs for US fulfilment and transportation employees introduced by Amazon in September 2025.
That move raised average pay for those employees to more than $23 (£17.20) an hour and reduced the cost of Amazon's entry-level health care plan to $5 (£3.74) a week, with $5 (£3.74) copays.
The announcement also comes after Teamsters-backed walkouts at several Amazon facilities during the 2024 holiday shopping season.
The US Bureau of Labor Statistics recorded a work stoppage involving about 7,000 workers from 19 December to 24 December 2024. The affected delivery drivers were organised by the Teamsters but were not considered Amazon employees because of their independent-contractor status.
Separately, the Occupational Safety and Health Administration and Amazon reached a corporate-wide settlement on 19 December 2024 concerning ergonomic hazards at Amazon facilities.
The agreement required Amazon to implement corporate-level measures covering ergonomic risk assessments, training and other controls, while allowing OSHA to conduct monitoring inspections.
