Amazon raises US base wage to $20 in $1.5B investment

Amazon is raising its minimum starting wage for eligible full-time US core operations workers by $1 to $20 an hour, effective September 27. The company stated that the raise represents an investment exceeding $1.5 billion. Average hourly pay for these roles will approach $24, while average total compensation including benefits will exceed $32 an hour.

The increase comes as Amazon prepares for the fourth quarter. The company employed about 1.58 million people worldwide at the end of 2025. In the first half of 2026, fulfillment expenses rose 13% year over year to $56.9 billion, even as fulfillment costs fell as a share of sales to 14.9% from 15.6%. In that same period, total net sales grew 18%, while technology and infrastructure expenses climbed 25%.

Recent quarterly results show financial capacity to handle the higher recurring payroll. In the second quarter, North American operating income rose from $7.5 billion to $9.1 billion, while consolidated operating income increased 43% to $27.5 billion. Second-quarter operating cash flow reached $45.4 billion. Across the entire first half of 2026, operating income reached $51.3 billion, and trailing 12-month operating cash flow stood at $161.4 billion.