Amazon raises worker pay to $23 an hour, invests $1B in wages and benefits

Amazon is increasing the average pay of its fulfillment and transportation employees to more than $23 per hour, an annual increase of $1,600 on average.

This comes as the e-commerce giant announced it will invest more than $1 billion to raise pay and lower healthcare costs for its employees. The average total compensation jumps to more than $30 an hour when including benefits.

In addition to the increased hourly wages, Amazon is also lowering the cost of its entry-level health care plan and raising the annual salary increases for those looking to build a career with the company.

Reducing costs, expanding benefits

“I’m happy to share that we’re making a substantial change in our entry-level health care plan and lowering the cost to only pay $5 per week and $5 for copays, starting in 2026,” Amazon Senior Vice President Udit Madan said. “That 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.”

The benefits package for employees includes health care starting on Day 1 of employment, Career Choice, which now pre-pays 100% of tuition at more than 475 education partners, and retirement savings with a company 401(k) match.

“These benefits are part of our commitment to making Amazon a place where employees can build a career, support their families, and invest in their future,” Madan stated.

Amazon was previously tasked with implementing safety measures in its facilities after workers filed claims regarding developing back problems and other ergonomic injuries. These safety measures were installed last December.

Amazon had more than 1.5 million full-time and part-time employees by the end of 2024.

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