Amazon raises starting pay to $20, and adds Whole Foods grocery discounts for eligible workers

Amazon is increasing compensation for some of its United States workforce with a pay bump and a new grocery perk, a move that could ease pressure on workers' budgets at a time when food costs remain a major concern for many everyday employees.

Here's what to know

Beginning Oct. 1, U.S. employees will receive 10% off certain grocery orders placed online through Amazon and Whole Foods, Amazon said. 

The company also wrote in a press statement that eligible full-time U.S. core operations workers will get a $1 increase in minimum starting pay, bringing that floor to $20 an hour and lifting Amazon's average hourly wage to nearly $24.

At Whole Foods stores, employees will receive 20% off most purchases, with gift cards and alcohol excluded, per The Hill. The outlet also reported that online, the 10% discount covers qualifying fresh foods, pantry goods, and everyday household items sold and shipped by Amazon, along with certain Whole Foods delivery orders, including catering.

In its press statement, Amazon wrote, "We've invested heavily through the years in our ability to deliver fresh groceries and everyday essentials quickly and reliably, and when we build something like that, we want our teammates to benefit from it just as much as our customers do."

Those discounts can also be combined with other promotions, including coupons and Subscribe & Save, according to The Hill.

Separately, Amazon said qualified employees and their families can get banking services through First Tech Federal Credit Union with a membership they can keep for life.

Compared with other major retailers, Amazon remains near the top in entry-level pay. The Hill reported that Walmart's frontline associates average about $18.50 an hour, while supply chain positions average $27.50. Meanwhile, Target says its frontline team members average $18.50 an hour, and its posted starting wages run from $15 to $24.

Still, the move by the tech giant is viewed as inadequate by many, who see the raises as marginal amid extraordinary profits.

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