Amazon announced it will invest more than $1 billion to raise wages and reduce health care costs for its U.S. fulfillment and transportation workers. The company stated that the average pay will increase to over $23 per hour, with some long-serving employees receiving hourly raises between $1.10 and $1.90. According to Amazon, full-time employees can expect their annual pay to rise by an average of $1,600.
In addition to wage increases, Amazon plans to lower the cost of its entry-level health care plan starting next year. The new plan will cost $5 per week with a $5 co-pay for primary care, mental health, and most non-specialist visits. The company said this would reduce weekly contributions by 34% and co-pays by 87% for those using the basic plan.
Amazon employs approximately 1.5 million people worldwide.
Last December, seven Amazon facilities experienced strikes led by the Teamsters union as part of efforts to secure a labor agreement during a key shopping season.
Also in December, Amazon reached a settlement with the Occupational Safety and Health Administration (OSHA) requiring the company to implement ergonomic measures across its U.S. facilities after OSHA cited hazardous working conditions that resulted in musculoskeletal disorders among workers.
Other major retailers have also raised wages recently. In January 2024, Walmart announced that its average hourly wage would exceed $18 due in part to higher-paying roles in Auto Care Centers and other changes. Walmart had previously increased starting wages in February 2023 to between $14 and $19 an hour, up from a range of $12 to $18 depending on location.
At Target, starting hourly wages for store and distribution center employees range from $15 to $24 depending on location, according to company spokesman Brian Harper-Tibaldo.
