Amazon has unveiled plans to invest more than US$1 billion (around £740 million) to enhance pay and reduce health care expenses for its US fulfilment centre and transport employees. The company says the move is designed to reward staff and improve retention at a time of high competition for workers.

From 2025, the average base wage for these positions will increase to over $23 (about £17) an hour. Once benefits are included, Amazon estimates that average overall compensation will top $30 (approximately £22) an hour. The company also intends to lower health care costs by introducing a new package where weekly contributions for entry-level plans fall to just $5 (£3.72), alongside $5 (£3.72) co-pays for routine services.

Amazon is also revising its step plan, meaning that tenure-based pay rises will become more substantial as employees progress through their careers. The firm says this approach will not only reward loyalty but also provide staff with clearer opportunities for advancement across its operations network.

The tech giant argues that this investment reflects its commitment to creating a more stable and motivated workforce. By focusing on better wages, affordable health care, and stronger career progression, Amazon hopes to build resilience within its logistics network and ensure it is better prepared to meet peak seasonal demand.