Amazon says it will raise pay across its U.S. warehouse and transportation staff network, lower the cost of health care for those on an entry-level plan and raise annual progression increases in a move aimed to increase overall compensation. In total, the changes represent a more than $1 billion investment.

According to Udit Madan, Senior Vice President, Amazon Worldwide Operations, Amazon has been investing in pay for several years, and someone who has been with the company for three years has seen their pay go up an average of 35%. This year, average pay will increase to more than $23 per hour in the U.S, and average total compensation will increase to more than $30 an hour when the value of the benefits package is included.

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Some veteran Amazon staff will receive a pay increase of $1.10 to $1.90 per hour, while the average bump for full-time employees is $1,600 annually.

Amazon will change its entry-level health plan and lower the cost to only $5 per week and $5 for co-pays, beginning 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. Healthcare benefits will begin on their first day 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,” said Madan in a Sept. 17 news announcement.

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Amazon’s benefit packages include health care coverage beginning on day one of employment for regular full-time employees as well as Career Choice, which pre-pays 100% of tuition at more than 475 education partners. Other benefits include retirement savings with a company 401(k) match, flexible time-off options that increase with tenure, paid parental leave and family support programs and an employee assistance program, which offers 24/7 mental health short-term counseling, referrals and work-life support.

“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,” Madan added. “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.”

In addition to changes announced in the U.S., wages will likewise increase for U.K. operations employees. Amazon employs over 1.5 million people globally as of early 2025, with more than 1.1 million in the U.S.