Amazon announced it is investing more than $1 billion to improve pay and reduce health care costs for its U.S. fulfillment and transportation employees. The company stated that employees with three years of service have seen their pay rise by an average of 35%. This year, Amazon is increasing the average hourly wage to over $23, with total compensation—including benefits—exceeding $30 per hour.
According to Amazon, “We’ve been investing in pay for several years, and someone who has been with us for three years has already seen their pay go up an average of 35%. This year, average pay is increasing to more than $23 per hour, and average total compensation is increasing to more than $30 an hour when you include the value of our industry-leading benefits package. Some of our most tenured employees will see an increase between $1.10 and $1.90 per hour, and full-time employees will, on average, see their pay increase by $1,600 per year. We also have an annual step plan where pay increases each year someone is with us, and as part of these changes we’re adjusting that plan so the increases are bigger each year than they’ve been in the past.”
The company also plans changes to its entry-level health care plan starting in 2026. Employee contributions will drop to $5 per week with a matching copay amount for primary care, mental health services, and most non-specialist visits under the basic plan. “This year, based on feedback from our teams, I’m happy to share that we’re making a substantial change in our entry-level health care plan and lowering the cost to only pay $5 per week and $5 for copays, starting in 2026. That will reduce weekly contributions by 34% and copays by 87% for primary care, mental health, and most non-specialist visits for employees using the basic plan,” Amazon stated.
These updates are expected to save employees hundreds of dollars annually on health expenses while building on existing offerings such as day-one health coverage for regular full-time staff members. The benefits package also includes pre-paid tuition through Career Choice at over 475 education partners; retirement savings with a company-matched 401(k); flexible time-off options that grow with tenure; paid parental leave; family support programs; and a 24/7 employee assistance program providing counseling services.
The company said many of these changes reflect direct employee feedback about what matters most in their workplace experience: “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.”
Since 2019 more than 425,000 U.S.-based Amazon workers have participated in skills training programs aimed at advancing into higher-paying roles within the organization.
