Amazon is raising pay for its U.S. core operations employees, a group that includes delivery drivers and fulfillment center workers. The minimum starting wage will move to $20 per hour, while average hourly pay will reach nearly $24 per hour. According to the company, the change amounts to a $1 per hour increase for eligible employees.
Udit Madan, an Amazon senior vice president, said in a blog post that once the value of the company's benefits is included, average total compensation exceeds $32 per hour. Amazon described those benefits as industry-leading. The pay increase represents an investment of more than $1.5 billion, a figure equal to roughly 0.06% of Amazon's $2.68 trillion market capitalization.
Alongside the raise, Amazon said it will give employees access to Day 1 Financial, which it described as a low-cost banking system, and a membership in First Tech Federal Credit Union. Workers will also receive a 20% discount on in-store purchases at Whole Foods Market, the grocery chain Amazon owns. Grocery orders placed online through Amazon will carry a 10% discount.
The new perks add to a benefits package Amazon already provides. That package includes free Prime memberships, prepaid education programs, and healthcare coverage. The company framed the banking access, credit union membership, and grocery discounts as additions to those existing offerings.
Reaction among some workers was skeptical. On a subreddit for Amazon fulfillment center employees, one worker questioned the value of the Whole Foods discount by noting that it would bring prices close to those of a regular store, an apparent reference to Whole Foods' historically higher prices. The worker's comment ended with laughter. The response suggested that at least some employees did not see the discount as a significant gain.
The pay changes apply to U.S. core operations roles, the same category that covers delivery drivers and fulfillment center staff. Amazon did not specify in the post how many employees are eligible for the increase. The company also did not say when the new wages or the added benefits take effect.
The announcement comes as Amazon continues to compete for hourly workers in a tight U.S. labor market, though the company did not frame the move in those terms. The $1.5 billion figure covers the cost of the raises alone, separate from the value of the benefits. Amazon's market value stood at $2.68 trillion at the time of the announcement.
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