Amazon increases minimum starting pay, adds new discount for employees

(NEXSTAR) – Amazon is once again raising wages for some of its workers and giving all of its U.S. employees a grocery discount.

The online retail giant, which also runs Whole Foods Market stores, made the announcement on Wednesday.

The minimum starting pay for full-time, core operations employees will now be $20 an hour, an increase of $1 an hour for qualifying workers, according to Amazon. The move bumps the company’s average hourly wage to almost $24 an hour.

“We also have an annual step plan where pay increases the first three years someone is with us, providing a clear path for how their pay can grow over time,” Udit Madan, the senior vice president for Amazon’s worldwide operations, wrote in a blog post .

Amazon also announced Wednesday that, starting Oct. 1, its U.S. employees can get 10% off groceries they order online through Amazon and Whole Foods, and 20% when shopping in-store at Whole Foods.

There are some stipulations. The company notes that, through its website, the 10% discount applies to “eligible fresh groceries, pantry staples, and everyday essentials sold and shipped by Amazon.” Through the Whole Foods website, the 10% discount is for “eligible items ordered for delivery, including catering.” Within the store itself, the 20% discount applies to everything except gift cards and alcohol.

Employees are able to stack their discount with other deals, like coupons and Subscribe & Save.

The company on Wednesday also announced a new banking benefit, offering workers “a membership in First Tech Federal Credit Union that provides qualified employees and their families banking services they can keep for life.”

Amazon ranks highly among other retail giants in terms of starting pay. Walmart’s average hourly wage is $18.50 for a “frontline associate,” while a supply chain associate averages $27.50 an hour. A frontline team member at Target also averages $18.50 an hour, though the retailer notes its starting pay ranges from $15 to $24 an hour, “depending on the role and location.”

A year ago, Amazon rolled out a similar wage hike and lowered the cost of health care plans for its U.S. fulfillment and transportation workers.

It came months after several Amazon facilities went on strike , an effort by the Teamsters union to pressure the e-commerce company for a labor agreement during a key shopping period on December.

That same month, Amazon reached a settlement with the Occupational Safety and Health Administration that requires the online behemoth to adopt corporate-wide ergonomic measures at facilities across the country. The agency claimed hazardous working conditions led to serious lower back and other musculoskeletal disorders at Amazon facilities.

The Associated Press contributed to this report.