Amazon raises U.S. starting wage to $20 per hour ahead of holiday season

NEW YORK -- Online behemoth Amazon said it's increasing the minimum starting hourly wage for its U.S. full-time core operations employees to $20 ahead of the crucial holiday shopping season.

With the $1-per-hour increase across the board for these workers who do jobs like pack and ship orders, the average pay for these employees will reach nearly $24 per hour, the company said Wednesday. The retailer said the average total compensation will be more than $32 an hour including the value of its benefits package.

The pay increase is effective starting Sept. 27, the retailer said.

Amazon also said Wednesday that employees will receive new benefits such as a 10% discount on eligible fresh groceries and everyday essentials at Amazon.com and Whole Foods Market online as well as 20% off at Whole Foods physical stores. The discount can be combined with existing Prime member discounts, the retailer said.

The discount will be available to every Amazon employee in the U.S. starting Oct. 1, the company said.

Amazon also said it's rolling out access to qualified employees and their families for a membership in First Tech Federal Credit Union that provides low-cost banking services they can keep for life. Employees can access accounts with no overdraft or monthly maintenance. The company said no credit history is required to open a checking and savings account.

The rollout will start later this year.

In comparison, Walmart last year expanded its 10% employee discount to include nearly all grocery purchases at its stores and online. The discount had previously applied to fresh groceries and general merchandise but didn't include such groceries as milk, pasta, or meat except during the November and December holiday shopping period.

At Walmart, the starting pay for hourly store workers is $14, with U.S. hourly employees making more than $18.50 on average, according to Walmart. Walmart also noted that the average hourly starting wage is $16.

For Walmart warehouse and other supply network workers, the average hourly wage is $27.50 and the average hourly starting wage is $24.75.

_____

This story has been corrected to show that Walmart hourly pay is $14 for store workers, not all workers.