Amazon is raising pay and expanding benefits for its U.S. fulfillment center and transportation employees, committing more than $1 billion to its frontline workforce ahead of the company’s peak holiday season.
The company said workers with three years of tenure have already seen their pay rise an average of 35%. Under the new increases, average hourly wages will climb to more than $23, while total compensation — including benefits — will top $30 an hour. Full-time employees will see annual pay rise by about $1,600, and long-tenured workers will receive hourly raises of between $1.10 and $1.90. Amazon is also enhancing its “step plan,” which provides larger yearly pay bumps for employees who stay with the company.
Amazon is also lowering health care costs for employees on its entry-level plan starting in 2026. Weekly premiums will drop to $5, with $5 copays for primary care, mental health, and most non-specialist visits. The company said the changes will cut weekly contributions by 34% and reduce copays by 87%, saving employees hundreds of dollars a year.
These changes add to an existing benefits package that includes health coverage starting on the first day for full-time employees, a 401(k) plan with company match, paid parental leave, flexible time off, and prepaid tuition at more than 475 education partners through its career choice program.
Amazon said the pay and benefits updates were shaped by employee feedback and are aimed at helping workers build long-term careers at the company. The announcement comes as Amazon prepares for its busiest stretch of the year, including its upcoming Prime Big Deal Days sales event and the holiday shopping season.
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