Amazon has announced a $1 billion investment aimed at increasing wages and reducing health care costs for its U.S. fulfillment and transportation workers, including those in California. According to the company’s website, the changes will include higher hourly pay and lower health expenses.
Fulfillment and transportation employees at Amazon who have remained with the company for three years have experienced an average wage increase of 35%. As part of this investment, which is set for 2025, the average hourly pay is now over $23, with total compensation exceeding $30 when benefits are included. Full-time workers will see an average annual wage increase of $1,600, with some hourly raises between $1.10 and $1.90.
Amazon’s new entry-level health care plan will reduce weekly employee contributions to $5 and cut most copays to $5 for primary care and mental health visits starting in 2026. These changes are expected to reduce weekly costs by 34% and lower copays by 87%, potentially saving employees hundreds of dollars per year. This is part of Amazon’s wider benefits package, which also includes paid parental leave, tuition support, and mental health resources.
The company has committed to becoming a benchmark for safety across its industries. It employs more than 10,000 workplace health and safety professionals globally. Since 2019, Amazon has invested over $2 billion in safety programs, technologies, and ergonomic improvements across more than 2,500 sites. The company reports a 34% reduction in Recordable Incident Rates (RIR) and a 65% drop in Lost Time Incident Rates (LTIR) over the last five years.
Amazon employs over one million people across the United States and has significantly expanded its operations and workforce since 2019. Regular full-time employees receive health care starting on their first day, access to fully prepaid tuition at over 475 institutions, 401(k) plans with company matching, and a complimentary Prime membership as part of the company’s long-term benefits strategy.
