The technology and retail giant said the average base wage for employees will climb to more than $23 per hour. For full-time staff, that increase translates to an additional $1,600 in annual pay on average.
As part of the initiative, Amazon is also lowering the cost of its entry-level healthcare plan. Beginning in 2026, weekly employee contributions will drop by 34%, with workers paying $5 per week and $5 for co-pays.
Amazon, which employs more than 1.5 million full- and part-time workers in the U.S., has faced sustained scrutiny over its labor practices, especially during peak shopping periods. The company relies heavily on seasonal workers and independent contractors to manage holiday surges, a practice that has often drawn criticism from unions and worker advocacy groups.
In late 2023, employees at seven U.S. facilities staged walkouts during the holiday rush, with union officials accusing Amazon of failing to negotiate contracts and treating workers unfairly. That same year, Amazon also settled with federal regulators over allegations that it failed to protect staff from ergonomic injuries, agreeing to implement new safety measures across its warehouses.
The latest compensation package reflects Amazon’s effort to address concerns about wages and working conditions while maintaining competitiveness in a tight labor market. Analysts say the move could also help the company stave off unionization efforts, which have gained traction among some of its warehouse employees in recent years.