Amazon says it is investing more than $2.2bn in its workforce through this pay hike. Credit: Alexey Fedorenko via Shutterstock.

Amazon has announced an increase in average total compensation for its fulfilment and transportation employees in the US.

This marks the company’s largest investment in pay and benefits for these workers to date.

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Effective immediately, hourly employees in these roles will see a minimum increase of $1.50 per hour, bringing their average base wage to more than $22 per hour.

When factoring in the value of benefits such as healthcare, dental coverage, and a 401(k) plan with company match, the average total compensation surpasses $29 per hour.

This substantial increase represents a $3,000 annual raise for employees working a 40-hour week.

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Amazon, one of the country’s largest private employers, is investing more than $2.2bn in its workforce through this pay hike.

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Beyond pay increases, Amazon says it offers a comprehensive benefits package that includes:

Healthcare from day one: A rare perk in the domestic industry.

Dental coverage: Ensuring access to essential dental care.

401(k) plan with company match: Helping employees save for retirement.

Flexible working hours: Providing a healthy work-life balance.

Prepaid college tuition: Investing in the future of its employees.

Amazon regularly reviews and adjusts its benefits based on employee feedback, ensuring that its offerings remain competitive and meet the needs of its workforce.

Recent enhancements include expanding eligibility for language classes through its Career Choice programme and adding Prime membership as a benefit for hourly employees.

The company has also made significant strides in safety over the past five years, with recordable injuries down by 28% and lost-time injuries down by 75% in the US.

These improvements are a result of ongoing efforts to prioritise employee safety and well-being, the company says.