Big Moves: Amazon Boosts Pay and Cuts Health Costs

Amazon is implementing substantial changes to support its employees, investing over $1 billion in raising wages and reducing healthcare costs.

Pay Increases

• Average pay will rise to more than $23 per hour.
• Experienced workers will receive raises ranging from $1.10 to $1.90 per hour.
• Full-time employees will see an additional $1,600 annually.

Healthcare Cost Reductions

Starting next year:

• Basic health plan will cost $5 per week.
• Doctor visits will cost $5 each.
• These changes represent a 34% reduction in weekly costs and an 87% reduction in visit costs.

Background

• Amazon employs 1.5 million workers worldwide.
• Last December, workers striked for better pay and conditions, supported by the Teamsters union.
• Amazon also settled with OSHA to improve working conditions after safety concerns were raised.

Other Companies Following Suit

• Walmart: Average pay will exceed $18 per hour, with new higher-paying roles added.
• Target: Pay ranges from $15 to $24 per hour, with an average exceeding $18 per hour.

These changes reflect a growing trend among major companies to prioritize worker well-being through better pay and healthcare benefits.