Amazon increases salary of its workers with major pay hike, full-time staff to earn $1,600 more annually

Amazon

Amazon is giving its workers a major pay boost. The company has announced a $1 billion investment to raise salaries and improve benefits for warehouse and delivery employees, according to a report by TechRadar.

With this change, the average pay for fulfillment and transportation staff will rise to more than $23 an hour. Including benefits, total compensation will go beyond $30 an hour. For full-time workers, the pay hike means they’ll earn about $1,600 more each year. Long-term employees will see hourly increases between $1.10 and $1.90.

Amazon says this builds on steady growth over the years. Employees who have stayed with the company for more than three years have already seen a 35% rise in pay since joining.

The improvements don’t stop at salaries. Amazon is also lowering healthcare costs. Entry-level health plans will now cost just $5 a week, with $5 copays for visits. That’s a 34% cut in weekly contributions and an 87% drop in copay fees. Workers will also be covered from their very first day on the job.

Other benefits are also being expanded. Amazon offers 100% free tuition through 475 education partners, 401(k) retirement savings with company matching, flexible time off, paid parental leave, and 24/7 mental health support.

“From small changes like making it easier to use flexible time, to bigger updates like expanding education programs or updating health care coverage options, we’re constantly listening and working to keep getting better,” said Udit Madan, Amazon’s Worldwide Operations SVP.

The pay rise looks even bigger when compared to the federal minimum wage, which has been stuck at $7.25 an hour for more than a decade. In many towns and cities, Amazon has become one of the few employers offering higher-than-average wages.

Still, the company has faced worker unrest. In 2024, employees at seven U.S. facilities staged walkouts during the busy holiday season, demanding better treatment and fairer contracts.

With this latest $1 billion investment, Amazon is trying to strengthen its position as one of the country’s largest employers while showing it is committed to raising standards for its workers.