Amazon has announced it is investing over $230m in higher pay and expanded benefits for over 100,000 employees working at Whole Foods in the US.

Amazon, which owns the grocery retailer said the investment is one of the largest made in its workforce to date.

The investment will see hourly store employees receive a pay rise from 28 September, while a new package of health, financial and education benefits will be introduced from January 2027.

From the beginning of next year, Amazon said eligible US Whole Foods Market employees will gain access to Amazon's employee benefits programme, including health insurance plans starting at $5 per week, One Medical memberships, fertility and family-building support, cancer care navigation, and company-funded short and long-term disability insurance.

The retailer is also expanding paid parental leave, offering up to 20 weeks for birthing parents and up to six weeks for supporting and adoptive parents.

Hourly employees will additionally receive a free Amazon Prime membership, access to discounted prescriptions through Amazon Pharmacy and retain the existing 20 per cent in-store employee discount.

Nearly 20,000 part-time employees working at least 20 hours a week will also become eligible for dental and vision cover, alongside basic life insurance.

Amazon said the changes will increase the average hourly wage for store employees to more than $21 an hour, while total compensation will rise to more than $29 an hour when the value of elected benefits is included.

The company is also replacing its performance review-based pay progression system for frontline staff with annual, predictable pay increases linked to tenure.

Later in 2027, Whole Foods employees will gain access to Amazon's Career Choice education programme, which prepays tuition for college courses, skills training and professional certifications. Amazon said more than 300,000 employees have participated in the scheme since its launch in 2012.

Jason Buechel, vice president of Amazon worldwide grocery stores and chief executive of Whole Foods Market, said the investment was shaped by employee feedback gathered during regular store visits.

"Our team members have consistently told us they want a clearer path for their pay to grow, more comprehensive health coverage and expanded benefits for part-time roles," he said.

"Our team members show up every day with care and expertise that no one can replicate. This investment is our way of showing up for them the way they show up for our customers and each other, every single day."

Buechel added that employee feedback has implemented initiatives over the firms 45-year history including its apprenticeship programmes, which have helped more than 2,150 staff members earn certifications in specialised skills like butchery and fish mongering

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