Amazon spending $1B on employee raises, health care

Amazon announced it will be making a $1 billion investment to raise wages and lower the cost of health care for its U.S. fulfillment and transportation workers. 

By the numbers:

The company said on Wednesday the average pay would increase to more than $23 an hour and that most tenured employees will see an increase between the $1.10 and $1.90 per hour range.

Full-time employees will see their pay increase by about $1,600 per year on average. 

Lower health care costs

Dig deeper:

Amazon also said it would be lowering the cost off its entry health care plan to $5 per week and $5 co-pays starting next year.

This 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. 

Walmart also announced wage increases

In January 2024, Walmart, the nation's largest private employer, said that average wages for hourly workers would exceed $18, up from $17.50. The increase was due to Walmart introducing some higher-paying hourly roles in its Auto Care Centers last year, among other changes, the company said.

Walmart had announced in January 2023 that U.S. workers would get pay raises the following month, increasing starting wages to between $14 and $19 an hour. Starting wages had previously ranged between $12 and $18 an hour, depending on location.