Amazon is spending $1billion to give its warehouse staff and drivers a well-earned pay rise

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Amazon is upping wages for US workers

Amazon
(Image credit: Shutterstock/Sundry Photography)
  • Amazon to raise fulfilment and transportation averages wages to $23/hour
  • Healthcare plans to drop by 34%, from $5 per week for entry-level plan
  • Free training, retirement savings and parental leave also on offer

Amazon has declared it will increase the living standards of US fulfilment and transportation employees in a huge $1 billion investment to raise salaries.

Average pay across these two role types will raise to over $23 an hour, with total compensation (including benefits) topping $30 an hour.

It means full-time employees will see an average annual pay increase of $1,600, with long-tenured employees getting an extra $1.10-$1.90 per hour.

Amazon is increasing wages across the US

This comes as long-term employees with more than three years’ service have already seen a 35% pay growth.

But Amazon isn’t just committed to boosting wages – it will also make healthcare more accessible to its workers, dropping the entry-level health plan to $5 a week with $5 copays, marking a 34% drop in weekly contributions and a very welcome 87% drop in copays.

“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, every day, together," shared Amazon Worldwide Operations SVP Udit Madan.

The company will also offer healthcare to full-time workers from day one, with 100% free tuition across learning opportunities from 475 partners also on offer. Other perks of working for the company include company 401(k) matching for retirement savings, flexible time off, paid parental leave and 24/7 mental health support.

The comes as federal minimum wage remains a very low $7.25/hour, making Amazon an important part of local economies and communities.

However, the company isn’t without its drawbacks, and in 2024 workers at seven US facilities walked off during peak holiday season after failing to negotiate contracts and alleged unfair worker treatment.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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