Amazon gives its workers a raise of $1 per hour

Amazon said it will raise the minimum starting wage for employees in its U.S. core operations — including delivery drivers and fulfillment center staff — to $20 an hour and that the average hourly pay in those roles will be nearly $24. The company framed the change as a $1-per-hour increase for workers who are eligible for the adjustment. Beyond higher hourly pay, Amazon is adding access to a low-cost banking offering called Day 1 Financial and membership in First Tech Federal Credit Union. The company is also expanding retail discounts for its staff: employees will receive a 20% discount on in-store purchases at Whole Foods Market and a 10% discount on groceries ordered through Amazon’s online services. Amazon pointed to its broader benefits suite when describing total compensation, noting free Prime memberships, prepaid education programs and health-care coverage are already provided. Senior Vice President Udit Madan wrote that when benefits are included, average total compensation for these roles exceeds $32 per hour. The company estimated the payroll and benefits changes will cost in excess of $1.5 billion, which it characterized as roughly 0.06% of Amazon’s $2.68 trillion market capitalization. Reaction from some front-line employees has been muted; a post on a subreddit for fulfillment center workers questioned the value of the Whole Foods discount relative to the grocer’s typical prices.