Amazon to Invest $1 Billion in Pay Hikes and Lower Healthcare Costs for U.S. Workers

Amazon has announced a $1 billion investment to raise wages and cut healthcare costs for its U.S. fulfilment and transportation employees, a move that will lift average total compensation to over $30 an hour.
The company said average hourly pay will rise above $23, translating into an annual increase of about $1,600 for full-time staff. Beginning in 2026, Amazon will also slash the cost of its entry-level health plan to $5 per week, with co-pays capped at the same amount—a 34% reduction in employee contributions.
Amazon, which employs more than 1.5 million full-time and part-time workers, also supplements its workforce with seasonal hires and contractors during peak periods.
The announcement comes as the company faces growing scrutiny of its labour practices. Last year, workers at seven sites staged walkouts during the holiday rush, while in December Amazon agreed to adopt new safety measures after federal regulators alleged it failed to protect employees from ergonomic risks such as back injuries.
By combining wage increases with lower healthcare expenses, Amazon is aiming to boost retention and ease criticism of workplace conditions, even as labour activism continues to mount.
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