Amazon to Invest ~$1B to Raise Employee Pay, Lower Healthcare Costs, Pushes Average Total Compensation to ~$30/Hour

Amazon.com Inc. (NASDAQ:AMZN) is one of the best innovative stocks to buy now. On September 17, Amazon.com announced that it is investing more than $1 billion to both raise pay and lower healthcare costs for its US fulfillment and transportation employees. The investment will push the average total compensation for these employees to over $30 per hour, which includes benefits.

The average hourly pay alone will increase to more than $23 per hour. Specifically, full-time employees are set to see their pay increase by an average of $1,600 per year. In addition to the pay raises, Amazon is lowering the cost of its entry-level healthcare plan, effective starting in 2026. The cost will drop to just $5 per week, with co-pays also set at $5.

This represents a 34% drop in the weekly contributions required from employees. At the end of last year, Amazon employed more than 1.5 million full-time and part-time employees, in addition to seasonal temporary workers and independent contractors hired for peak seasons like the crucial holiday rush. The announcement follows a period of worker tension.

Amazon.com Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.