Amazon hourly pay is increasing by $1 for eligible full-time operations workers in the United States.
Amazon announced Wednesday that the new minimum hourly rate will reach $20. The increase applies to eligible full-time employees in the company’s U.S. operations.
The move raises the base wage while Amazon continues to expand its benefits package for hourly workers.
The company said average total compensation will now exceed $32 per hour when the value of benefits is included.
Amazon Adds New Banking Benefit
Amazon also announced a new employee benefit called “Day 1 Financial.”
The program will give qualified employees and their families lifetime access to low-cost banking services through First Tech Federal Credit Union.
The benefit adds to several programs Amazon already offers.
Employees can access healthcare coverage for as little as $5 per week, according to the company. Amazon also provides eligible workers with a free Prime membership and prepaid education programs.
As a result, the company is highlighting both wages and benefits as part of its overall compensation package.
Amazon Competes for US Workers
The wage increase comes as large US retailers compete for hourly workers.
Walmart’s U.S. hourly wages start at $14, according to information on the company’s website. Target lists a minimum hourly wage of $15.
Costco, meanwhile, raised its minimum wage for entry-level workers to $20 per hour last year, according to its annual report.
Amazon’s new $20 minimum therefore puts its eligible full-time operations workers at the same base hourly rate as Costco’s entry-level workers.
However, the companies use different compensation structures and benefit packages, so hourly pay alone does not show the full value of employment.
Amazon Highlights Total Compensation
Amazon said its average total compensation will exceed $32 per hour after including benefits.
The company has increasingly emphasized compensation beyond basic wages as it competes for workers across its fulfillment, transportation and other operations.
The latest increase also comes as workers continue to watch wages alongside healthcare, education and other workplace benefits.
Amazon’s new banking program adds another financial benefit for qualifying employees and their families.
Pay Increase Takes Effect for Eligible Workers
The $1 increase gives eligible full-time U.S. operations employees a new minimum base rate of $20 per hour.
Amazon has not described the move as a change to every employee’s individual wage. Instead, the announcement covers the minimum hourly pay for eligible full-time operations workers.
The company also continues to offer benefits that can increase the overall value of its compensation package.
For workers, the combination of higher base pay and additional benefits could make the latest compensation changes significant.
Amazon’s announcement also places its hourly wage among the rates offered by some of the largest U.S. retailers.
The company will now promote a $20 minimum hourly rate alongside its expanded benefits package as it competes for workers across its U.S. operations.
