Amazon raises minimum pay for warehouse workers to $20 an hour

Amazon announced it is raising the minimum starting wage for its full-time U.S. operations employees to $20 an hour, a $1 per hour increase the company said represents a more than $1.5 billion investment.

Average pay for the warehouse workers who sort, pack, and ship orders will now reach nearly $24 an hour. The pay increase takes effect Sept. 27.

The company’s minimum starting pay has risen more than 17% over the past three years. Amazon first set its minimum wage at $15 an hour in 2018.

Grocery discounts

Alongside the pay bump, a new grocery discount for all U.S. employees arrives on Oct. 1. It provides a 20% discount on in-store purchases at Whole Foods Market, and 10% off eligible groceries and everyday essentials on Amazon.com.

New banking benefit for employees and their families

Amazon also unveiled a benefit called “Day 1 Financial,” a partnership with First Tech Federal Credit Union. Qualified employees, along with their spouses and children, get a lifetime membership with the credit union. The membership stays with them even after they leave the company.

The benefit includes no overdraft fees, no monthly maintenance fees, and no account minimums on standard checking and savings accounts. No credit history is required to open an account.

Where Amazon stands in the market

The wage increase comes as competition for warehouse and logistics workers remains intense. Costco raised its minimum wage for entry-level workers to $20 an hour last year, and Walmart has also increased starting wages for store and warehouse employees multiple times in recent years. Amazon hired 250,000 full-time, part-time, and seasonal workers ahead of last year’s holiday season.

Amazon’s Ties to the Northwest

The announcement comes as the company’s relationship to Washington is in the spotlight.

Earlier this week, KIRO host Jake Skorheim questioned whether Amazon has “written Seattle off” after the company was notably absent from a recent business coalition letter on public safety.

“Amazon is not investing and growing in the downtown anymore. They’re just not that interested,” Jake said on “The Jake and Spike Show” on KIRO Newsradio. “They’re investing in Bellevue, in the Eastside. They’re investing in other states. They’re doing a lot of data center building in other places, but they’re not going to do that in Washington.”

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