Amazon has raised its minimum wage in the US to $20 an hour, a $1 increase from its previous starting level, with average pay at the company now reaching $24 an hour. The company is also expanding employee benefits to include grocery discounts: an uncapped 10% off eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market Online, plus 20% off in-store at Whole Foods Market. The wage increase brings Amazon's minimum pay in line with Costco, which raised its lowest starting pay to $20 an hour in 2025 and lifted pay for most workers to more than $30 an hour. Both retailers now start higher than most competitors, with Target at $15 an hour and Walmart at $14 an hour. Amazon has about 1.1 million employees in the US, making it the second largest private employer behind Walmart, and it has also cited the creation of 390,000 Amazon delivery service provider jobs operated by contractors. Udit Madan, senior vice-president of worldwide operations at Amazon, said in a blog post announcing the increase that he is excited about how these investments work together to help employees and their families thrive for the long run.
Costco Wholesale CorpCostco is cited as the benchmark Amazon's new $20 minimum wage matches, highlighting competitive wage pressure.
Target Corporation
Walmart Inc.
Amazon.com IncAmazon raised its US minimum wage to $20/hr and expanded grocery discounts, raising labor costs but improving benefits.
