Amazon is raising minimum starting pay for its U.S. full-time core operations employees by $1 to $20 per hour as part of a more than $1.5 billion investment in higher wages.

The company announced Sept. 16 that average hourly pay for those employees will reach nearly $24, while average total compensation exceeds $32 per hour when including benefits. Amazon said its minimum starting pay has increased more than 17% over the past three years.

The increase applies to eligible front-line workers involved in operations such as sorting, packing and transporting customer orders. Amazon also maintains an annual step plan under which employee pay increases during their first three years with the company.

Alongside the wage increase, Amazon introduced two new employee benefits.

Beginning Oct. 1, all U.S. Amazon employees will receive an uncapped 10% discount on eligible groceries and everyday essentials purchased through Amazon.com and Whole Foods Market online, along with a 20% discount on in-store Whole Foods purchases. Those discounts can be combined with existing Prime member savings.

Amazon is also launching Day 1 Financial — a banking benefit provided through First Tech Federal Credit Union. Qualified employees, spouses and children will have access to accounts without overdraft or monthly maintenance fees or account minimums, along with credit-building programs and other financial services. Access will begin rolling out later this year and become broadly available in 2027.

The compensation move comes as Amazon continues expanding other parts of its business relevant to distributors, including its Amazon Business B2B marketplace.

In July, MDM reported that Amazon Business surpassed $60 billion in annualized gross sales during the second quarter, up from roughly $35 billion at the end of 2022. The platform now serves more than 11 million organizations worldwide and has continued adding procurement, AI and commercial delivery capabilities.

More recently, Amazon Business expanded its reconciliation reporting capabilities, increasing its report from 34 to 75 columns and adding line-item detail intended to help finance teams match charges, track refunds and allocate spending. The update was announced Sept. 11.