On Wednesday, Amazon announced its plans to invest more than $1 billion to increase wages and lower healthcare costs for its U.S. fulfillment and transportation workforce. The company stated that this investment would raise the average total compensation for these employees, including benefits, to over $30 an hour.
The technology giant noted that the average pay would climb to more than $23 per hour, with full-time workers receiving an average annual raise of $1,600. Furthermore, beginning in 2026, the company is reducing the cost of its entry-level healthcare plan to $5 per week and $5 for co-pays, which constitutes a 34% drop in weekly contributions from employees.
As of the end of last year, Amazon employed over 1.5 million full-time and part-time workers and also hires temporary and independent contractors seasonally, particularly during the critical holiday period. Last year, employees at seven U.S. facilities walked off the job during the holiday shopping season after union officials claimed the company had failed to come to the bargaining table to negotiate contracts. The workers were protesting what they described as Amazon’s unfair treatment. In December, Amazon also agreed to put new safety measures in place at all its U.S. facilities to settle a federal agency’s claims that it had not prevented workers from developing back problems and other ergonomic injuries.
