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Fact check: How do Walmart employee pay and benefits in 2025 compare to other major US retailers like Target and Amazon?
Executive Summary
Walmart’s 2025 pay landscape centers on a new performance‑based raises program and average hourly wages in the mid‑teens, while Amazon’s frontline pay and total compensation sit notably higher, with fulfillment roles averaging above $22–$23 per hour and total pay exceeding $29–$30 per hour [1] [2] [3] [4]. Target’s reported starting ranges overlap Walmart’s but extend higher in some local markets, positioning Target between Walmart and Amazon on headline hourly rates [5] [2].
1. What the core claims actually say and why they matter
The materials assert three core claims: Walmart shifted to performance‑linked annual raises that can add up to a 5% base‑pay increase for top hourly workers starting in 2026, aiming to improve retention and align pay with individual metrics [1]. Second, Walmart’s 2025 reported average hourly pay bands sit roughly $14–$19 (with an average near $17.50) depending on role and location, and benefits include health insurance, 401(k) matching, and education assistance [5] [2]. Third, Amazon increased pay for fulfillment and transportation staff to above $22–$23 per hour with total compensation over $29–$30 per hour, plus expanded benefits and lowered employee health costs as part of a >$1 billion commitment [3] [4]. These claims matter because hourly rate comparisons drive recruiting, turnover, and public perception across major U.S. retailers.
2. Walmart’s 2025 pay mechanics — dollars, raises, and the new performance tilt
Walmart’s 2025 picture blends a baseline hourly band and a structural change to how raises are awarded, with starting ranges reported at $14–$19 and company averages around $15–$19 depending on role; the company emphasizes career pathways and quicker promotions for high performers [2] [5]. The most consequential policy change is the shift to a performance‑based annual raise process where attendance, teamwork, and store results influence raise percentages and top workers could see up to a 5% base pay increase effective 2026 [1] [6]. This move shifts Walmart’s rhetoric from uniformly raising floor wages to calibrating increases to individual and store outcomes, which can widen pay dispersion and link retention more tightly to measurable on‑the‑job behaviors [1].
3. Amazon’s 2025 frontline compensation — higher headline pay and beefed benefits
Amazon’s filings and announcements in 2025 show a material step up for frontline staff: average hourly wages for fulfillment and transportation roles exceed $22–$23 per hour, with total compensation topping $29–$30 per hour when benefits and other elements are counted [3] [4]. Amazon also highlighted lowered employee health costs on entry plans and continued investments in prepaid education, skills training, 401(k) matching, and parental leave as part of a more than $1 billion commitment to its workforce, positioning its total value proposition above many rivals on paper [3] [7]. The net effect is a compensation package that places Amazon ahead of the typical Walmart hourly median on headline hourly and total compensation metrics.
4. Where Target fits — an intermediate position with local variability
The supplied analyses portray Target’s starting hourly wages as $15–$24 depending on job and market, which means Target can outpace Walmart in some higher‑cost or higher‑skill roles while overlapping with Walmart’s midrange in many locations [5]. That puts Target in a middle tier between Walmart’s broadly lower starting bands and Amazon’s higher fulfillment averages, but the precise ranking depends heavily on regional pay floors, role type, and whether total compensation (bonuses, benefits, reduced health costs) is considered. Target’s flexibility to pay up to the mid‑20s in some markets suggests it competes aggressively where labor is tight, even as Walmart leans on performance raises to sharpen retention [5].
5. Benefits and non‑wage compensation — how apples differ from oranges
All three companies offer core benefits such as health insurance, retirement matching, and education assistance, but the structure and cost to employees differ: Walmart highlights standard benefits and education programs tied to advancement [2]; Amazon emphasizes reduced healthcare costs for employees on its entry plan, expanded benefits, and a large budgetary commitment to frontline improvements [3] [7]. These distinctions mean comparisons that rely only on hourly wage rates miss substantial value components like employee health cost reductions, 401(k) match formulas, parental leave, and prepaid education that boost total compensation figures, and which, in Amazon’s case, materially increase the apparent gap versus Walmart.
6. Big picture, limitations, and practical takeaways for workers
The evidence shows Walmart in 2025 pursuing a performance‑driven pay model with mid‑teens hourly ranges and opportunity for modest raises, Target occupying an overlapping but sometimes higher starting band, and Amazon offering clearly higher headline and total compensation for many frontline roles [1] [2] [5] [3] [4]. Caveats include regional wage variability, role‑specific pay scales, and that total compensation comparisons depend on health‑plan costs and extra benefits; the data provided do not contain exhaustive, role‑by‑role breakdowns. For frontline workers choosing employers, the tradeoffs are higher base and total pay at Amazon versus Walmart’s potential upward mobility through performance raises and Target’s mixed positioning that can be competitive in specific locales [1] [5] [4].