Amazon has announced a $1 billion investment aimed at increasing wages and reducing health care costs for its U.S. fulfillment and transportation employees. The initiative includes higher average pay, lower health plan expenses, and expanded annual raises, as said on the company’s website.
According to Amazon, fulfillment and transportation employees who have been with the company for three years have seen an average wage increase of 35%. As part of this investment set for 2025, the average hourly pay is now over $23, with total compensation exceeding $30 when benefits are included. Full-time workers will experience an average annual wage increase of $1,600, with some hourly raises ranging from $1.10 to $1.90.
Amazon’s new entry-level health care plan will reduce weekly employee contributions to $5 and cut most copays to $5 for primary care and mental health visits starting in 2026. These changes aim to reduce weekly costs by 34% and lower copays by 87%, potentially saving employees hundreds of dollars annually. This forms part of Amazon’s broader benefits package, which also includes paid parental leave, tuition support, and mental health resources.
The company has committed to setting a benchmark for safety across its industries and employs more than 10,000 workplace health and safety professionals globally. Since 2019, Amazon has invested over $2 billion in safety programs, technologies, and ergonomic improvements across more than 2,500 sites. It reports a 34% reduction in Recordable Incident Rates (RIR) and a 65% decrease in Lost Time Incident Rates (LTIR) over the past five years.
Amazon employs over one million people across the United States and has significantly expanded its operations since 2019. Regular full-time employees receive healthcare starting on their first day of employment, access to fully prepaid tuition at over 475 institutions, 401(k) plans with company matching contributions, and a complimentary Prime membership as part of the company’s long-term employee retention strategy.
