Amazon has raised the minimum starting pay for its full-time core operations employees in the US by $1 to $20 an hour, with average pay now close to $24.

The increase forms part of a package exceeding $1.5bn in higher wages and new employee benefits.

The US retail giant said average total compensation, including benefits, now stands at more than $32 an hour.

It runs an annual step plan under which pay rises during a worker's first three years at the company.

Amazon is also launching a banking benefit named "Day 1 Financial", giving qualified staff and their families membership of First Tech Federal Credit Union, a member-owned institution federally insured by the National Credit Union Administration.

The benefit can be kept for life by employees, spouses and children, and includes no overdraft charges, no monthly maintenance fees, no minimum account balances and no credit history requirement for opening an account.

It also offers surcharge-free access to ATMs nationwide, reimbursement of up to $300 a year for out-of-network ATM fees, and eligibility for credit cards, auto loans and home loans.

Rollout of Day 1 Financial will begin in late 2026, becoming widely available in 2027.

The banking benefit adds to Brightside Financial Care, a free service already in place that links staff with financial assistants for budgeting, debt management and related support.

More than 150,000 hourly employees have used the service since 2022.

According to Amazon, minimum starting pay has risen by more than 17% over the past three years.

The wage increase follows a separate initiative announced by the company.

Earlier this month, Amazon confirmed it would put more than $230m over the coming year into pay rises and wider benefits for over 100,000 US Whole Foods Market staff.

New health, family and financial benefits for these employees will take effect from 1 January 2027, when Whole Foods Market staff in the US will gain access to Amazon's broader benefits package.