Amazon recently announced a substantial investment of over $1 billion aimed at significantly improving the financial well-being and health benefits for its U.S. fulfillment and transportation teams. This commitment is set to boost the average total compensation, including benefits, to more than $30 per hour for these essential employees.
The tech giant confirmed that the average hourly pay for these workers will climb to over $23, with full-time staff expecting an average annual increase of $1,600. This is a considerable step towards recognizing their hard work and dedication.
A key highlight of this initiative is the reduction in healthcare costs. Starting in 2026, the company’s entry-level health care plan will be dramatically lowered to just $5 per week, with co-pays also set at $5. This represents an impressive 34% decrease in weekly contributions for employees, making vital health coverage far more accessible and affordable.
As of last year, Amazon employed more than 1.5 million full-time and part-time individuals, a number that fluctuates with seasonal hiring, especially during busy periods like the holiday season when temporary workers and independent contractors are brought in.
This positive announcement follows a period where Amazon faced scrutiny regarding its employee relations. Last year, workers at seven U.S. facilities staged walkouts during the critical holiday shopping season, protesting what they perceived as unfair treatment and the company’s reluctance to engage in contract negotiations.
Furthermore, in December, Amazon committed to implementing enhanced safety measures across all its U.S. facilities. This agreement was reached to address federal agency complaints regarding the company’s failure to prevent employees from suffering ergonomic injuries and back problems, underscoring a renewed focus on workplace safety.