Amazon announced Tuesday it’s raising the minimum wage for all U.S. employees to $15, effective next month.

last month introduced legislation called the BEZOS Act to tax corporations for every dollar that their low-wage workers receive in government health-care benefits or food stamps.

For 2017, the median Amazon employee earned just under $28,500, according to company filings. Bezos earned $1.7 million.

“We listened to our critics, thought hard about what we wanted to do, and decided we want to lead,” Bezos said in a statement. “We’re excited about this change and encourage our competitors and other large employers to join us.”

Retail rival Target announced in its holiday hiring release it would raise minimum wage to $15 by 2020. Walmart announced in January of this year it would raise its minimum wage to $11.

Amazon will also start advocating for an increase to the federal minimum wage, the company said.

The announcement comes ahead of Amazon’s annual holiday hiring push. Last year the e-commerce giant said it would hire 120,000 temporary employees for the holiday season.

In August, national wage growth posted its biggest increase of the economic recovery, according to a Bureau of Labor Statistics report. Payroll gains beat expectations and the unemployment rate held near a generational low of 3.9 percent — making holiday hiring tougher for many retailers.

—CNBC’s Tom Rotunno and Jeff Cox contributed to this report.

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