Amazon has announced a $2.2 billion investment to boost wages and enhance benefits for hourly employees across its U.S. fulfillment and transportation network.

Udit Madan, Amazon’s vice president of worldwide operations, emphasized the company’s commitment to competitive compensation through annual reviews of wages and benefits.

“Hourly members of our front-line team will be getting at least an additional $1.50 per hour starting at the end of this month,” Madan said. “That’s a raise of more than $3,000 a year for the average full-time employee working 40 hours a week.”

This investment will increase Amazon’s average base wage for hourly employees to over $22 per hour, significantly higher than the 2023 national average of $17.70 per hour for warehouse workers, according to the U.S. Bureau of Labor Statistics.

The enhanced benefits package includes comprehensive health, vision, and dental insurance that starts from the first day of employment for all full-time workers. This immediate eligibility is particularly noteworthy, as many U.S. employees experience waiting periods before their health benefits take effect. Additionally, Amazon has introduced a mental health support program offering free counseling sessions and pediatric mental health services. 

Starting next year, Amazon will also roll out a new Prime membership benefit for employees as part of these enhancements.

Amazon's Career Choice program further enhances employee support by providing opportunities for workers to pursue degrees, certifications, and training in high-demand fields such as technology and healthcare. This program aims to equip employees with valuable skills that align with evolving job market needs, ensuring they have pathways to advance their careers.

The U.S. Bureau of Labor Statistics estimates 11% growth in tech roles over the next decade.