Amazon Raises Starting Hourly Wage to $20 and Expands Employee Benefits

Yahoo Finance ·

Global e-commerce giant Amazon announced on Wednesday, September 16, 2026, that it is raising the starting hourly wage for full-time U.S. operations workers by $1 to $20. With this adjustment, the average wage will reach nearly $24 per hour, bringing total average compensation to over $32 hourly including benefits. The pay raise goes into effect on September 27. Additionally, starting October 1, employees will receive a 10% discount on eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market online, along with a 20% discount at Whole Foods physical stores. The company is also providing eligible workers and their families with lifetime access to First Tech Federal Credit Union for fee-free, low-cost banking services without requiring a credit history. By comparison, rival Walmart offers a starting hourly wage of $14, with average hourly earnings exceeding $18.50 for its U.S. hourly workforce.

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Amazon announced a 1 dollar increase in the minimum hourly wage for full-time U.S. logistics employees to 20 dollars, while raising the average hourly wage to approximately 24 dollars. This measure will take effect on September 27, along with additional benefits such as Whole Foods discounts and financial services. While this increase in labor costs will heighten the company's cost burden in the short term, it will act positively in securing top talent.

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Amazon's 1 dollar increase in the minimum hourly wage and the achievement of a 24 dollar average hourly wage are factors that directly increase the company's operating costs. This exerts downward pressure on the operating profit margin in the short term and is interpreted as a strategic investment to gain the upper hand in talent acquisition competition with competitor Walmart.

Going forward, the key points to watch are the impact of rising labor costs on margins and whether labor productivity improves. Since a lack of accompanying cost efficiency improvements could lead to deteriorating profitability, related indicators must be closely monitored.

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