Amazon has announced that it will invest more than $1 billion to raise wages and reduce healthcare costs for its US fulfilment and transportation employees. The move will lift the average total compensation, including benefits, to over $30 an hour.
The company said average hourly pay will rise to more than $23, with full-time workers expected to see an annual increase of about $1,600. Beginning in 2026, Amazon will also lower the cost of its entry-level health plan to $5 per week, with co-pays capped at $5. This represents a 34 per cent reduction in employee contributions.
Amazon, which employed more than 1.5 million full-time and part-time workers at the end of last year, also hires seasonal staff and independent contractors to meet demand during peak shopping periods.
The announcement comes amid heightened scrutiny of Amazon’s labour practices. Last year, employees at seven facilities staged walkouts during the holiday rush, with union representatives alleging unfair treatment and lack of progress on contracts. In December, Amazon agreed to adopt new safety measures across US facilities to settle federal claims that the company had failed to protect workers from ergonomic injuries, including back problems.
By tying higher pay with reduced healthcare costs, the investment signals Amazon’s efforts to strengthen retention and ease criticism over workplace conditions, even as labour activism around the company continues to grow.
