Amazon raises starting pay $1 and gives workers 10% grocery discount

Amazon is giving its U.S. workers a raise and a bundle of new benefits. Starting September 27, full-time employees in core operations jobs will earn at least $20 an hour — that is $1 more than before. The company also announced grocery discounts and a new banking program to help workers manage their money.

The pay raise applies to workers who pick, pack, sort, and ship customer orders. Many of these jobs do not require any previous work experience, making them easy to get for first-time workers. Amazon says the raise brings the average hourly pay for these employees to nearly $24 an hour. The company also noted that its minimum starting pay has gone up more than 17 percent over the past three years.

The timing of the raise matters, too. Amazon is heading into the holiday shopping season, when millions of people order gifts and goods online. The company usually hires extra workers during this busy time to keep up with the flood of orders. Offering higher pay can help Amazon attract more job seekers during that rush.

Udit Madan, a top Amazon leader who oversees worldwide operations, explained that workers can expect their pay to keep growing. He wrote that Amazon has an annual step plan where pay increases during the first three years on the job, giving workers a clear path for how their pay can grow. This means new workers can plan ahead and know what their future paychecks might look like.

Starting October 1, every Amazon employee in the U.S. will get discounts on groceries and everyday items. Workers will save 10 percent on fresh groceries and other essentials bought through Amazon.com or Whole Foods Market Online. At physical Whole Foods stores, employees will get an even bigger deal — 20 percent off, including food from the hot bar and salad bar. These discounts can even be stacked on top of existing Prime member discounts.

Amazon has been growing its grocery business for years. It bought Whole Foods Market back in 2017 and has since expanded same-day grocery delivery to more neighborhoods across the country. Giving employees discounts at Whole Foods connects the workforce to Amazon's growing grocery business. It also helps workers save money on food, which is a big expense for most families.

Amazon also announced a new financial benefit called Day 1 Financial, offered through First Tech Federal Credit Union. This program gives qualified employees and their family members access to basic banking services like checking and savings accounts. There are no monthly fees, no overdraft fees, and no minimum balance required to open an account. Workers will also have access to thousands of free ATMs and up to $300 a year to cover fees from out-of-network ATMs.

Another helpful part of the program is that workers do not need a credit history to open an account. This is important because many people — especially young workers — may not have a credit history yet. Employees can also use the accounts to build credit and may be able to apply for credit cards and loans. Even better, workers get to keep their accounts for life, even if they leave Amazon one day.

The banking benefit will not be available right away — Amazon says it will start rolling out in 2026 and be widely available by 2027. In the meantime, Amazon employees already enjoy other perks, such as free Prime memberships, health care starting at just $5 a week, and paid time off for new parents. The company also helps employees pay for college through prepaid education programs and offers a 401(k) retirement plan with company matching. All of these benefits together make Amazon one of the larger employers in the country when it comes to worker perks.