Amazon invests a billion dollars to boost wages and reduce healthcare expenses for American employees
In a groundbreaking move, Amazon has announced a series of initiatives aimed at enhancing the well-being and career growth of its employees. The tech giant is investing over $1 billion to boost wages, lower healthcare costs, and offer a range of new benefits for its U.S. workers.
Starting next year, the average wage for Amazon workers will surpass $23 per hour, marking a substantial increase from the previous average. Full-time employees, on average, can expect a yearly pay increase of more than $1,600. Some of Amazon's most tenured employees will see an hourly increase between $1.10 and $1.90.
Amazon is also providing its employees with a monthly contribution towards learning and development resources, with a focus on upskilling and reskilling opportunities. This move is part of the company's efforts to improve its career development programs.
To support employees' daily needs, Amazon is offering a monthly transportation benefit, covering up to $10 per month for public transit costs. The company is also providing a monthly grocery benefit, covering up to $10 per month for grocery purchases at Whole Foods Market.
Recognising the importance of work-life balance, Amazon is expanding its on-site childcare facilities for employees. The goal is to serve 30,000 children by 2025. The company is also increasing parental leave for part-time employees, with part-time workers now receiving up to 20 weeks of paid parental leave.
Amazon is also making strides in employee healthcare. The cost of its entry healthcare plan will be reduced to $5 per week, and co-pays for the healthcare plan will also be lowered to $5, starting next year. These changes aim to make healthcare more accessible and affordable for Amazon's workforce.
In addition, Amazon is offering tuition-free college education to its U.S. employees. Over 74,000 employees have already taken advantage of this opportunity. The company is also providing emergency relief funds, including financial assistance for unexpected expenses.
Lastly, Amazon is committed to supporting the mental health of its employees. The company is offering mental health support, including access to counseling and other resources, to help employees navigate the challenges of modern life.
Andrew Jassy, the CEO of Amazon responsible for these investments, took over from Jeff Bezos on July 5, 2021. Under his leadership, Amazon is demonstrating a strong commitment to its employees and their well-being. These initiatives are a testament to Amazon's dedication to fostering a supportive and growth-oriented work environment.
