Amazon announced it will invest over $1 billion to increase pay and reduce health care costs for its U.S. fulfillment and transportation employees. The company said that workers who have been with Amazon for three years have seen their pay rise by an average of 35%. With the latest changes, average hourly pay will exceed $23, and when factoring in benefits, total compensation will surpass $30 per hour.
Some long-serving employees will see hourly wage increases between $1.10 and $1.90, while full-time staff can expect an average annual raise of $1,600. Amazon is also modifying its annual step plan so that pay increases each year are larger than before.
The company is lowering the cost of its entry-level health care plan to $5 per week with $5 copays starting in 2026. This adjustment will cut weekly contributions by 34% and copays by 87% for primary care, mental health, and most non-specialist visits under the basic plan. According to Amazon, these changes will save employees hundreds of dollars annually on health care expenses.
Employees receive additional benefits such as health coverage beginning on their first day of employment for regular full-time positions, a pre-paid tuition program through Career Choice at more than 475 education partners, a 401(k) retirement savings plan with company match, flexible time-off options that grow with tenure, paid parental leave and family support programs, and access to an employee assistance program offering round-the-clock mental health counseling and support services.
Amazon says these updates reflect feedback from employees about what matters most to them. “A lot of the changes we’re sharing today are based on what our employees say matters to them, and they’re just one example of how we listen and respond to feedback. From small changes like making it easier to use flexible time, to bigger updates like expanding education programs or updating health care coverage options, we’re constantly listening and working to keep getting better, every day, together,” the company stated.
Since 2019, more than 425,000 Amazon employees in the U.S. have participated in skills training programs designed to help them move into higher-paying roles.
