Amazon.com announced on Wednesday that it will spend more than $1 billion to improve wages and healthcare benefits for its U.S. employees. The move will raise average compensation to over $30 an hour, including benefits.
The company said average pay will rise to more than $23 per hour. For full-time staff, the increase means an additional $1,600 in annual pay on average. Amazon invests in this wage adjustment to provide better financial stability for its workforce.
Starting in 2026, the company will also reduce healthcare expenses. The entry-level healthcare plan will cost just $5 per week, while co-pays will also drop to $5. This represents a 34 percent cut in employee contributions, making healthcare more affordable for thousands of workers.
Amazon employs more than 1.5 million full-time and part-time staff in the U.S. It also hires seasonal workers and independent contractors, especially during peak shopping periods such as the holiday season.
The decision comes after a challenging period for Amazon’s labor relations. Last year, workers at seven facilities staged walkouts during the holiday rush. Union representatives accused the company of avoiding negotiations and criticized its treatment of employees.
In December, Amazon settled a federal case by agreeing to new safety measures across all U.S. sites. The measures aim to reduce workplace injuries, particularly back problems linked to ergonomic issues.
By investing in higher wages and affordable healthcare, Amazon hopes to strengthen its position as a major U.S. employer. Analysts say the changes could also ease tensions with workers and unions, while improving retention in a competitive labor market.
With this move, Amazon invests not only in its employees but also in long-term workplace stability. The initiative reflects growing corporate efforts to address worker demands for fair pay and better benefits.
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