Amazon to Invest $1 Bn in US Worker Pay Hikes Ahead of Festive Sales

Ahead of the 2025 festive season, e-commerce giant Amazon has announced a pay raise for its fulfillment and transportation workers in the US. The Seattle-based company, which employs about 1.5 million people globally, said it is investing around $1 billion to raise the average pay of its US workers to over $23 per hour.

In a statement, Amazon said employees with three years of service have already seen their pay rise by an average of 35%. Total compensation, including the value of its industry-leading benefits, will now exceed $30 per hour. Some of the most tenured employees will see hourly increases of $1.10–$1.90, while full-time employees can expect an average annual pay rise of $1,600.

“We also have an annual step plan where pay increases each year for every employee, and as part of these changes, we’re adjusting that plan so the increases are larger than before,” the statement read.

The company is also reducing the cost of its entry-level healthcare plan to $5 per week, with $5 co-pays, starting in 2026. This will lower weekly contributions by 34% and co-pays by 87% for primary care, mental health, and most non-specialist visits under the basic plan.

These changes come just weeks before Amazon launches its "Prime Big Deal Days" sale from October 7, featuring discounts across a wide range of products, from electronics and beauty items to gifts and seasonal essentials.

Last year, during a similar festive season sale in December, Workers union Teamsters-led strikes occurred at seven Amazon facilities as workers pressed for a labor agreement. That same month, Amazon settled with OSHA, agreeing to implement nationwide ergonomic measures following allegations of hazardous conditions causing back and musculoskeletal injuries.

US e-commerce giant Amazon posted an 11% rise in full-year 2024 (FY24) net sales to $638.0 billion, up from $574.8 billion in 2023. North American and international sales grew 10% and 9%, respectively, with international sales adjusting to 10% after currency effects.

CEO Andy Jassy had called it “the most successful holiday shopping season yet” for Amazon.

According to the Associated Press, Amazon’s retail rivals have also raised wages. Walmart increased its average hourly pay above $18 in early 2024, while Target offers $15–$24 depending on location, with average store wages exceeding $18.