Amazon.com Inc.

09/17/2025 | Press release | Distributed by Public on 09/17/2025 06:16

Amazon is investing over $1 billion to raise pay and lower health care costs for U.S. fulfillment and transportation employees

Key takeaways

  • Fulfillment and transportation employees who have been with Amazon for three years have seen their pay go up by 35% on average.
  • Average pay is increasing to more than $23 per hour, and average total compensation is increasing to more than $30 an hour when you include the value of our industry-leading benefits package.
  • Benefit updates include a reduced-cost health care plan at $5 per week with $5 copays-on top of a free Prime membership, pre-paid tuition programs, 401(k) with company match, and more.
Fall is an exciting time across Amazon-it's the leadup to some of our busiest shopping events, like Prime Big Deal Daysand 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.

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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. This year, I'm excited to share that, here in the U.S., we're raising pay again across our network, lowering the cost of health care for those on our entry-level plan, and raising the annual progression increases (also called a step plan) for people who choose to build their careers with us (meaning the longer people stay, the more their pay increases year over year). It's all part of a more than $1 billion commitment to our teams.
Here's a bit more about each of those new investments.

Investing in compensation

We've been investing in pay for several years, and someone who has been with us for three years has already seen their pay go up an average of 35%. This year, average pay is increasing to more than $23 per hour, and average total compensation is increasing to more than $30 an hour when you include the value of our industry-leading benefits package. Some of our most tenured employees will see an increase between $1.10 and $1.90 per hour, and full-time employees will, on average, see their pay increase by $1,600 per year. We also have an annual step plan where pay increases each year someone is with us, and as part of these changes we're adjusting that plan so the increases are bigger each year than they've been in the past.

Reducing the cost of health care with our entry-level plan

We also made the decision many years ago to invest in creating an industry-leading benefits package because we know that things like health care, education, and retirement contributions play a critical role in employees' and their families' long-term wellbeing. Benefits like that are still too rare in our industry, but we strongly believe that investing in them is the right thing to do for our teammates. And we've continued to invest through the years to make them even better.
This year, based on feedback from our teams, I'm happy to share that we're making a substantial change in our entry-level health care plan and lowering the cost to only pay $5 per week and $5 for copays, starting in 2026. That will reduce weekly contributions by 34% and copays by 87% for primary care, mental health, and most non-specialist visits for employees using the basic plan.

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For many employees, Amazon offers health care starting on day one of employment, along with mental health and well-being resources, cancer support, and 24/7 access to medical advice.

These changes mean hundreds of dollars in savings each year, helping make health care more affordable for employees and their families. They build on one of the strongest benefits packages in our industry, which includes:
  • Health care starting on Day 1 of employment for regular full-time employees
  • Career Choice, which now pre-pays 100% of tuition at more than 475 education partners
  • Retirement savings with a company 401(k) match
  • Flexible time-off options that increase with tenure
  • Paid parental leaveand family support programs
  • Employee assistance program, offering 24/7 mental health short-term counseling, referrals, and work-life support
These benefits are part of our commitment to making Amazon a place where employees can build a career, support their families, and invest in their future.

Why this matters

A lot of the changes we're sharing today are based on what our employees say matters to them, and they're just one example of how we listen and respond to feedback. 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.

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When I joined Amazon as a software engineer in 2008, I didn't imagine I'd one day be responsible for a team of more than a million employees across the globe. But through every stage of my journey, I've seen that Amazon gives people opportunities to grow, to stretch, and to succeed in ways they might not have thought possible. We work to create those opportunities, and to invest in people who want them.
I'm proud of this team, not just for safely delivering millions of smiles each day, but for the way they show up for each other. These investments are part of our ongoing commitment to making Amazon a place where people can thrive, and I look forward to delivering the future together.
Next, learn more about working at Amazon.

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Related Tags

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Amazon.com Inc. published this content on September 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 17, 2025 at 12:16 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]