Amazon invests over $1 billion to raise employee pay, lower healthcare costs

Amazon.com said on Wednesday it is investing more than $1 billion to raise pay and lower healthcare costs for U.S. fulfillment and transportation employees, pushing up the average total compensation to over $30 an hour including benefits.

The technology giant said the average pay would increase to more than $23 per hour, adding that full-time employees will see their pay increase by $1,600 per year, on average.

The company is lowering the cost of its entry-level health care plan to $5 per week and $5 for co-pays, starting in 2026, representing a 34% drop in weekly contributions from employees.

Amazon had more than 1.5 million full-time and part-time employees at the end of last year.

The company also hires temporary workers and independent contractors seasonally, particularly around the crucial holiday season.

Last year, Amazon workers at seven U.S. facilities had walked off the job during the holiday shopping rush, after union officials said the retailer had failed to come to the bargaining table to negotiate contracts. Employees were protesting what they said was Amazon’s unfair treatment of its workers.

In December, Amazon also agreed to implement safety measures at all of its U.S. facilities to settle a federal agency’s claims that it failed to prevent workers from developing back problems and other ergonomic injuries.