Amazon increases minimum hourly wage to $20

Amazon has announced a $1 hourly wage increase for its full-time operations employees in the United States, raising the minimum pay to $20 per hour. The company stated that average total compensation, including benefits like healthcare, free Amazon Prime memberships, and prepaid education, now exceeds $32 per hour. Additionally, Amazon introduced 'Day 1 Financial,' a program providing employees and their families access to low-cost financial services. This wage adjustment brings Amazon's entry-level pay in line with Costco, while remaining higher than the starting rates at Walmart and Target. Despite the increase, critics note that the policy only applies to direct employees, excluding the large number of workers hired through third-party subcontractors. The announcement follows a period of significant financial growth for the company, which reported annual revenue of $716.9 billion in 2025.