Amazon Raises Minimum Pay for Operations Workers and Adds Grocery Discounts

Amazon is raising minimum pay for core operations workers to $20 an hour. The $1-an-hour raise applies to full-time employees, including many workers in Amazon warehouses who pick, pack, and sort orders.

The company said its average hourly wage is now about $24. For affected workers, the update is a direct pay increase tied to Amazon’s operations workforce.

Amazon is also adding grocery benefits for all US Amazon employees. The benefits include a 20% discount on in-store purchases at Whole Foods stores, covering groceries as well as the hot bar and salad bar.

Employees will also receive a 10% discount on eligible fresh groceries and essential items ordered on Amazon.com. Both discounts take effect on October 1.

Amazon bought Whole Foods in 2017 and has expanded same-day delivery of fresh groceries to thousands of US cities and towns. The new discount connects employee benefits to a grocery network Amazon has been building as it competes with Walmart and other grocers.

Udit Madan, Amazon’s Senior Vice President of Worldwide Operations, wrote that when Amazon builds that kind of network, it wants teammates to benefit from it as much as customers do.

Amazon will also offer employees a membership in First Tech Federal Credit Union, which provides basic services such as auto loans. Amazon calls the benefit Day 1 Financial.

The benefit will be available to employees, their spouses, and children. Business Insider reported it remains available even if employees leave Amazon.