Amazon lifts US starting wage to $20 and expands grocery discounts

Amazon has increased its minimum hourly wage in the United States to $20, a move that aligns its baseline pay with that of rival retailer Costco. According to the company, the average wage across its workforce now stands at $24 an hour. This adjustment represents a one-dollar increase from the previous starting rate, reflecting a broader strategy to enhance compensation for its large American workforce.

In addition to the wage hike, the retailer is broadening its employee benefits package to include significant grocery savings. Staff will now receive an uncapped 10% discount on eligible fresh produce and everyday essentials purchased through Amazon.com and Whole Foods Market Online. Furthermore, employees can access a 20% discount when shopping in person at Whole Foods Market locations. These measures are designed to provide tangible financial support to workers and their families.

The pay revision places Amazon on par with Costco, which raised its lowest starting pay to $20 an hour in 2025. Both companies now offer starting wages that exceed those of many competitors, such as Target and Walmart, which maintain lower baseline rates. Amazon employs approximately 1.1 million people in the US, making it the second-largest private employer in the country behind Walmart. Udit Madan, senior vice-president of worldwide operations, stated that these investments are intended to help employees thrive for the long run.