Amazon Lifts Starting Hourly Wage to $20 for Operations Staff

The company reported that average total compensation now exceeds $32 per hour when accounting for benefits, which include healthcare coverage starting at $5 per week and prepaid education programs. Alongside the pay hike, Amazon introduced "Day 1 Financial," a service providing employees and their families access to low-cost financial tools through First Tech Federal Credit Union. With this change, Amazon matches the entry-level pay scale established by Costco last year, placing it significantly ahead of competitors like Walmart and Target, where starting rates currently sit at $14 and $15 per hour.

Despite the wage bump, the policy remains limited to direct hires. Labor advocates point to the company’s ongoing opposition to New York City’s "Delivery Protection Act," which seeks to mandate direct employment for delivery and warehouse staff currently managed by third-party firms. The financial capacity for these shifts follows a period of growth for the retailer, with annual revenue climbing 12 percent from $638 billion in 2024 to $716.9 billion in 2025.