Amazon has raised its minimum wage in the US to $20 an hour, with average pay at the company reaching $24 an hour, according to the company.

The pay increase represents a $1 increase from its starting level.

The company is also expanding employee benefits to grocery discounts, with an uncapped 10% off eligible fresh groceries and everyday essentials on Amazon.com and Whole Foods Market Online, plus 20% off in-store at Whole Foods Market.

The wage increase brings Amazon’s minimum pay in line with Costco, which raised its lowest starting pay to $20 an hour in 2025, with pay for most workers raised to more than $30 an hour.

Both retailers have starting pay higher than most competitors; at Target, the starting wage remains $15 an hour, and $14 an hour at Walmart.

Amazon has about 1.1 million employees in the US, the second largest private employer behind Walmart. The company has also cited the creation of 390,000 Amazon delivery service provider jobs, which are operated by contractors.

“We talk a lot about continuous improvement at Amazon—about always wanting to get better, even when things are going well,” wrote Udit Madan,senior vice-president of worldwide operations at Amazon, in a blog post announcing the pay increase. “I’m excited about how these investments work together to help our employees and their families continue to thrive for the long run.”