Amazon investing over $1B in hourly employee pay, health benefits
Amazon is making a big investment to raise pay and lower health care costs for its fulfillment and transportation workers.
The online giant says that in the U.S., it is committing more than $1 billion to increase average hourly pay to more than $23 for hourly associates, with average total compensation increasing to more than $30 an hour including the value of its benefits package.
According to Amazon, a fulfillment or transportation worker who has been with the company for three years has seen their pay increase an average of 35%. On average, the company says full-time employees will see their pay increase by $1,600 per year, with some of the most-tenured workers seeing an increase between $1.10 and $1.90 per hour.
Amazon also has an annual step plan where pay increases each year someone is employed there, and as part of these changes the company is adjusting that plan so the increases are bigger each year than they have been in the past.
This marks the third September in a row Amazon has provided a pay increase to hourly workers. In September 2023, the company increased hourly worker pay $20.50 per hour from $19 per hour.
And in September 2024, Amazon gave members of its U.S. frontline worker team a raise of at least an additional $1.50/hour. In early 2025, Amazon began offering membership in the Prime program, which includes unlimited fast, free delivery of eligible as well as free access to the Prime Video streaming service among many other features, free of charge to hourly employees.
[READ MORE: Amazon gives hourly workers pay raise, free Prime membership]
Health care changes
Based on feedback from workers, Amazon is lowering the cost of its entry-level health plan to pay $5 per week and $5 for copays, starting in 2026. Amazon says this 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.
"These investments are part of our ongoing commitment to making Amazon a place where people can thrive, and I look forward to delivering the future together," Udit Madan, senior VP, Amazon worldwide operations, said in a corporate blog post.
