Amazon has announced that it will raise the pay of its employees in the U.S., while also lowering the costs of health care for some roles.
The technology company said it had been investing in pay for several years and that certain employees who had been with Amazon for three years had already seen their pay increase by 35 percent on average.
Amazon said it was spending $1 billion in total to improve pay and benefits for its employees.
Newsweek has contacted Amazon and the Amazon Labor Union for comment via email outside regular working hours.
Why It Matters
About 1.1 million of Amazon’s more than 1.5 million workers are based in the U.S., according to the data website Demand Sage. The website’s data also shows that almost 50 percent of employees leave Amazon within a year.
Amazon workers went on a series of strikes across the U.S. at the end of last year, with one on Black Friday and another in the lead-up to Christmas, over alleged labor violations, environmental harm and threats to democratic practices.
What To Know
Amazon announced on Wednesday that average pay would increase this year to more than $23 per hour.
Certain employees who have been with the company for a longer period of time will see increases in their wages of between $1.10 and $1.90 per hour, while other full-time employees will, on average, see annual pay go up by $1,600 per year, according to the company.
Amazon’s annual step plan also means that each year an employee stays with the company, their pay also increases. This year, the plan is being adjusted so that increases will be larger than seen previously.
Alongside wage increases, the digital marketplace is also changing its entry-level health care plan and lowering the cost to pay $5 per week and $5 for copays, beginning in 2026.
This reduces weekly contributions by 34 percent and copays by 87 percent for primary care, mental health and most nonspecialist visits.
“These changes mean hundreds of dollars in savings each year, helping make health care more affordable for employees and their families,” Amazon said in its news release.
What People Are Saying
Udit Madan, a senior vice president for Amazon Worldwide Operations, wrote in the company’s release: “Fall is an exciting time across Amazon—it’s the lead-up to some of our busiest shopping events, like Prime Big Deal Days and the holiday shopping season, and there’s a bit of extra energy across our network. It’s a time when we’re reminded just how much the work that our teams do matters, because our customers are counting on us to not just deliver products they need, but to help make their holidays really special.”
He added: “It’s also a time when we review our pay and benefits, and I get to share an update with our teammates about how we’re continuing to invest in their experience and growth.”
What Happens Next
Amazon’s employees can expect to see their wages increase this year, with changes to health care benefits coming into effect next year.