Amazon has announced a $1 billion investment to raise wages and reduce health care costs for its US fulfilment and transportation employees, a move that will see average pay climb to more than $23 per hour and average total compensation exceed $30 per hour when benefits are included.

The company said the pay increases will result in full-time employees earning, on average, an additional $1,600 per year.

The Seattle-based technology giant, which employs more than 1.5 million full-time and part-time staff in the US, is also lowering the cost of its entry-level health care plan to $5 per week and $5 for co-pays, starting in 2026. This represents a 34 per cent reduction in weekly contributions and an 87 per cent drop in co-pays for primary care, mental health, and most non-specialist visits for employees using the basic plan.

Udit Madan, senior vice president of Amazon Worldwide Operations, said the changes reflect the company’s ongoing commitment to investing in its workforce. “Average pay is increasing to more than $23 per hour, and average total compensation is increasing to more than $30 an hour when you include the value of our industry-leading benefits package,” Madan stated. “Some of our most tenured employees will see an increase between $1.10 and $1.90 per hour, and full-time employees will, on average, see their pay increase by $1,600 per year.”

The company’s benefits package includes health care from the first day of employment for regular full-time staff, a pre-paid tuition programme, retirement savings with a company 401(k) match, flexible time-off options, paid parental leave, and family support programmes. Amazon also offers an employee assistance programme, providing 24/7 mental health counselling, referrals, and work-life support.

Amazon’s investment comes after a year in which workers at several US facilities staged walkouts during the holiday shopping season, protesting what they described as unfair treatment and calling for improved labour conditions. In December, Amazon agreed to implement safety measures at all US sites to settle federal claims related to ergonomic injuries.

The company said the latest changes are based on employee feedback and are designed to make health care more affordable and to reward long-term service. Amazon continues to hire temporary workers and independent contractors seasonally, particularly during peak shopping periods.

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