Amazon employs hundreds of thousands of people in warehouses and delivery operations across the United States. On September 16, it told them their pay is going up. The company announced a $1-per-hour raise for eligible U.S. core operations employees, bringing the minimum starting wage for full-time roles to $20 an hour, according to Amazon's press release.
Average hourly pay for core operations workers rises to nearly $24. With benefits factored in, average total compensation exceeds $32 an hour. Amazon said the minimum starting wage has now risen more than 17% over the past three years.
Amazon said the pay increases will cost more than $1.5 billion. The investment covers workers involved in fulfilling and delivering customer orders, including fulfillment-center workers and delivery drivers. Amazon did not describe it as a companywide raise for every employee.
Udit Madan, Amazon's senior vice president of Worldwide Operations, said the company evaluates pay and benefits annually. "I often hear that they appreciate a good paycheck, but also really value the full range of benefits that we offer, which together help them support their families and grow in the long run," he wrote in a blog post announcing the changes. JPMorgan resets Amazon stock target after AI payoff Amazon CEO Jassy may deliver a July 30 AWS earnings shock Amazon stock slides as Prime Day data reveals shopper shift ahead of earnings For a full-time employee working 40 hours a week year-round, the $1-per-hour increase works out to about $2,080 more annually before taxes.
The $1.5 billion figure is a significant outlay in absolute terms and comes to roughly 0.06% of Amazon's current market capitalization of about $2.68 trillion. The federal minimum wage is $7.25 and Congress has not raised it since 2009. Amazon's new $20 floor is nearly triple that.
Many states have passed their own higher minimums, some above $15, so Amazon's starting wage lands above most state floors too. The company says it sets pay by looking at what it takes to fill and keep positions in its busiest markets. The pay increase comes alongside a new banking benefit and grocery discounts, both effective October 1, 2026.
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