Employees with three years of service have experienced an average pay increase of 35%, with current wages surpassing $23 and total compensation over $30 per hour.

Amazon is investing over $1 billion to increase wages and reduce healthcare costs for its U.S. fulfillment and transportation workers, with average pay now exceeding $23 per hour.

This wage boost will lead to some long-tenured employees earning between $1.10 and $1.90 more per hour, and full-time employees will see an annual pay increase of about $1,600.

The investment aims to support staff during peak shopping seasons like Prime Day and the holidays, helping attract and retain talent.

Alongside the wage increases, Amazon settled with OSHA to implement ergonomic safety measures across its facilities following investigations into hazardous working conditions that caused musculoskeletal disorders.

These safety improvements, agreed upon in December, are part of Amazon's efforts to address unsafe working conditions and reduce health risks for employees.

Amazon states these changes are driven by employee feedback and are part of ongoing efforts to improve workforce satisfaction and retention.

With a global workforce of 1.5 million, Amazon has faced labor issues including strikes and union efforts, notably by the Teamsters in December 2023, highlighting ongoing labor disputes.

Last year, employees at seven U.S. facilities went on strike during the holiday season to protest unfair treatment and the lack of contract negotiations.

Amazon’s senior VP of Worldwide Operations emphasized the company's commitment to providing growth opportunities and investing in its employees.

This initiative reflects Amazon's broader efforts to improve working conditions and employee compensation, potentially influencing industry standards.

Starting in 2026, Amazon will lower the cost of its entry-level healthcare plan to $5 per week and reduce co-pays by 87%, significantly decreasing healthcare expenses for employees.

This move follows industry trends, with competitors like Walmart and Target also increasing wages; Walmart's average wages exceeded $18 in early 2024, and Target's wages range from $15 to $24 depending on location.