Amazon.com announced on Wednesday that it will invest more than $1 billion to boost pay and reduce healthcare costs for its U.S. fulfillment and transportation employees, raising average total compensation to over $30 an hour when benefits are included.
The company said average hourly pay will climb to more than $23, with full-time employees receiving an annual increase of about $1,600. Starting in 2026, Amazon will also lower the cost of its entry-level healthcare plan to $5 per week, with $5 co-pays — a 34% reduction in weekly employee contributions.
Amazon, which employed over 1.5 million full-time and part-time workers at the end of last year, also relies on temporary staff and independent contractors during peak holiday seasons.
The announcement comes after growing labor tensions. Last year, employees at seven U.S. facilities staged walkouts during the holiday shopping rush, with union leaders accusing Amazon of unfair treatment and refusal to negotiate contracts.
In December, the company also agreed to introduce nationwide safety measures to settle federal claims that it had failed to protect workers from ergonomic injuries, including back problems.
