SEATTLE, September 17, 2025 – Amazon.com (AMZN.O) announced a 1 billion investment to raise pay and reduce healthcare costs for U.S. fulfillment and transportation workers.
The move signals Amazon’s continued efforts to attract and retain warehouse workers amid ongoing labor market pressures and unionization attempts across its facilities.
- Average hourly pay increases to over 23 per hour
- Full-time workers gain 1,600 annually on average
- Entry-level health plan costs reduced significantly
Pay Structure and Benefits Enhancement
The Seattle-based e-commerce giant said average pay will increase to more than 23 per hour, or over 30 per hour including benefits 1. Tenured employees with three years of service have seen their pay increase by 35% on average since joining the company 2.
Full-time employees will see their annual pay increase by 1,600 on average, while experienced workers will receive hourly increases between 1.10 and 1.90 3. Amazon also reduced costs for its entry-level health insurance plan, though specific savings amounts were not disclosed.
Market Context and Labor Competition
The investment comes as major retailers compete intensively for warehouse workers. Walmart, Amazon’s primary retail competitor, recently raised its average hourly wage to 18, while Target maintains a 24 minimum wage for most positions.
Amazon’s wage increases affect hundreds of thousands of fulfillment and transportation employees across the United States. The company operates over 1,000 delivery stations and fulfillment centers nationwide, employing more than 1.5 million workers globally.
Strategic Implications
The billion-dollar commitment represents Amazon’s largest single investment in frontline worker compensation to date. Industry analysts view the move as both a response to labor market tightness and a preemptive strategy against unionization efforts at various Amazon facilities.
The timing coincides with peak hiring season ahead of the holiday shopping period, when Amazon typically adds hundreds of thousands of seasonal workers. Higher base wages could reduce recruitment costs and improve worker retention during the crucial fourth quarter.
Financial Impact and Outlook
Amazon has not specified how the 1 billion investment will be distributed over time or its impact on quarterly operating expenses. The company reported 574 billion in net sales for 2023, suggesting the wage investment represents roughly 0.17% of annual revenue.
The enhanced compensation package takes effect immediately for eligible employees. Amazon said the changes affect workers across its fulfillment network, delivery stations, and transportation operations.
Not investment advice. For informational purposes only.
References
1“Amazon Will Invest 1 Billion to Raise Pay, Lower Health Care Costs for Workers”. Morningstar. Retrieved September 17, 2025.
2“Amazon raises pay, lowers health insurance costs for US fulfillment and transportation employees”. About Amazon. Retrieved September 17, 2025.
3“Amazon has a 1 billion pay and healthcare plan for these US workers”. Times of India. Retrieved September 17, 2025.
4“Amazon spends 1 billion to increase pay and lower health care costs for US workers”. WABE. Retrieved September 17, 2025.
5“Amazon investing over 1 billion to raise employee pay-and-lower health care costs”. Yahoo Finance. Retrieved September 17, 2025.
6“Amazon Spends 1 Billion to Increase Pay and Lower Health Care Costs for US Workers”. U.S. News. Retrieved September 17, 2025.
7“Amazon Invests over 1 billion to Raise Employee Pay, Lower Health Care Costs”. Asharq Al-Awsat. Retrieved September 17, 2025.
8“Amazon to invest over 1 billion to raise employee pay, reduce health care costs”. News.az. Retrieved September 17, 2025.