Amazon is raising its minimum starting wage by $1 to $20 an hour for full-time fulfillment and transportation workers, effective September 27. The $20 floor applies only to full-time core operations staff. It isn’t a company-wide minimum or the rate for part-time workers.
The increase comes as Amazon expands automation across its operations. The NYT had reported that leaked planning documents projected automation could help the company avoid up to 160,000 US hires by 2027. Amazon said the documents were incomplete.
Average hourly pay for the group will rise to nearly $24, while average total compensation including benefits will exceed $32. Amazon expects the pay increase to cost more than $1.5 billion. The company says its minimum starting pay has risen more than 17% in three years.
US warehousing and storage workers averaged $26.74 an hour in July, according to the Bureau of Labor Statistics. That puts Amazon's new starting floor below the sector-wide average, although Amazon says its average hourly pay will approach $24 across the group.
Amazon is also adding an uncapped grocery discount for employees from October 1, with 10% off eligible items on Amazon.com and Whole Foods Market online, and 20% off in Whole Foods stores. A banking benefit with First Tech Federal Credit Union will roll out later this year and more broadly in 2027.
Amazon raises pay each September. Average hourly pay was above $22 in 2024 and above $23 in 2025. The new $20 floor is also below some local wage requirements. Seattle, Amazon's home city, set its 2026 minimum wage at $21.30.
The broader labor market has cooled, too. Job openings across transportation, warehousing and utilities fell to 316,000 in July from 383,000 in June, according to BLS JOLTS data.
