Amazon will invest over US$1 billion to raise pay and lower healthcare costs for its US fulfillment and transportation employees.

The company said average total compensation, including benefits, will exceed US$30 an hour, with average pay rising to more than US$23 per hour.

Amazon added that full-time workers would see their annual pay rise by about US$1,600 on average.

Starting in 2026, Amazon plans to reduce the cost of its entry-level healthcare plan to US$5 per week and US$5 for co-pays, a 34% drop in weekly employee contributions.

Amazon employed over 1.5 million full-time and part-time staff at the end of last year, and regularly hires temporary and contract workers during peak seasons.

In 2024, workers at seven US Amazon sites went on strike during the holiday season after union officials said the company failed to negotiate contracts and treated workers unfairly.

🔗 Source: Reuters

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