Amazon

Amazon is investing more than $1 billion to reduce health care costs and increase pay for fulfillment and transportation employees, the company announced on Wednesday.

“This year, I’m excited to share that, here in the United States, we’re raising pay again across our network, lowering the cost of health care for those on our entry-level plan and raising the annual progression increases (also called a step plan) for people who choose to build their careers with us (meaning the longer people stay, the more their pay increases year over year),” said Udit Madan, senior vice president of Amazon worldwide operations. “It’s all part of a more than $1 billion commitment to our teams.”

This increased financial contribution brings average total compensation to more than $30 an hour when benefits are included. “Some of our most-tenured employees will see an increase between $1.10 and $1.90 per hour, and full-time employees will, on average, see their pay increase by $1,600 per year,” he said.

For many employees, Amazon offers health care starting on day one of employment, along with mental health and wellbeing resources, cancer support and 24/7 access to medical advice. The Amazon basic health care plan covers preventive care such as screenings and immunizations at no cost. The $5 primary care deductible covers common medical needs such as pediatric care; regular office visits; substance use disorder care; and physical, speech, occupational and mental health therapy.

Employee benefits vary based on factors such as work location, scheduled work hours, length of employment and employee type, such as seasonal or temporary. Depending on number of hours worked, part-time and seasonal employees also may qualify for medical insurance after 90 days.

Madan touted the company’s expanding benefits package, which includes:

  • Health care starting on Day 1 of employment for regular full-time employees;
  • Career choice, which now prepays 100% of tuition at more than 475 education partners;
  • Retirement savings with a company 401(k) match;
  • Flexible time-off options that increase with tenure;
  • Paid parental leave and family support programs; and
  • Employee assistance program, offering 24/7 mental health short-term counseling, referrals and work-life support

“These benefits are part of our commitment to making Amazon a place where employees can build a career, support their families and invest in their future,” he said.
Amazon had more than 1.5 million full-time and part-time employees at the end of last year. The company also hires temporary workers and independent contractors seasonally, particularly around the holiday season.

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