Amazon announces $1 billion raises, reduced healthcare costs for workers

Amazon is set to invest over $1 billion to raise wages and lower healthcare costs to improve conditions for U.S. fulfilment and transportation employees.

The primary motive behind this investment is to increase the average total compensation to over $30 per hour, including benefits for their families.

However, Amazon is working to reduce the cost of its entry-level health care plan to $5 per week and $5 for co-pays, starting officially in 2026.

This represents a 34% drop in weekly contributions from employees.

The company has recruited temporary workers and independent contractors, particularly around the holiday season.

It has been observed that last year, Amazon workers at seven U.S. facilities walked off the job during peak of shopping in holiday season.

Amazon has previously received criticism for its unfair treatment of its workers.

Amazon has agreed to implement safety measures at all its U.S. facilities to settle a claim by a federal agency.

These investments play a pivotal role in Amazon’s ongoing commitment to creating a place where people can excel and look forward to a bright future together.

Nonetheless, it is a platform that enables people to create opportunities and invest in people to foster growth worldwide.