Udit Madan, Senior Vice President of Amazon Worldwide Operations, announced that the company will invest over $1 billion to raise pay, lower entry-level health costs starting in 2026, and boost annual step increases for U.S. employees. This statement was made on the company’s website.
“Fall is an exciting time across Amazon—it’s the leadup to some of our busiest shopping events, like Prime Big Deal Days and the holiday shopping season, and there’s a bit of extra energy across our network,” said Madan, Senior Vice President, Amazon Worldwide Operations. “This year, I’m excited to share that, here in the U.S., we’re raising pay again across our network, lowering the cost of health care for those on our entry-level plan, and raising the annual progression increases (also called a step plan) for people who choose to build their careers with us (meaning the longer people stay, the more their pay increases year over year). This year, average pay is increasing to more than $23 per hour, and average total compensation is increasing to more than $30 an hour when you include the value of our industry-leading benefits package. These investments are part of our ongoing commitment to making Amazon a place where people can thrive, and I look forward to delivering the future together.”
In September 2025, Amazon revealed plans to invest $1 billion to increase average pay for U.S. fulfillment and transportation workers—including those in Georgia—to more than $23 an hour. The company also intends to reduce basic health plan costs to $5 a week with $5 copays for primary care and mental-health visits. These changes aim to attract and retain hourly staff amid rising medical costs and a tight labor market, according to Fox 5 Atlanta.
Amazon’s new compensation structure elevates the average hourly wage for U.S. operations employees to over $23, bringing average total compensation—including benefits—to more than $30 per hour. The overhaul introduces a $5-per-week health plan with $5 copays for routine care and mental-health services across fulfillment centers and delivery networks, as reported by Retail Brew.
Since 2020, major U.S. logistics and e-commerce firms have significantly increased wages while employee health-insurance costs continue to rise. Employer family health-plan premiums climbed 7% in 2023 and another 7% in 2024, reaching an average of $25,572. The average single-coverage deductible stood at $1,787, according to KFF’s annual Employer Health Benefits Survey.
Madan joined Amazon in 2008 as a software development engineer and advanced through logistics and delivery leadership roles before overseeing global delivery services. In 2024 he was appointed Senior Vice President of Worldwide Operations, managing fulfillment, transportation, and last-mile delivery globally following Amazon’s reorganization of its U.S. network.
Founded in 1994, Amazon employs about 1.56 million people worldwide as of December 2024 and operates one of the largest U.S. fulfillment and delivery networks. Its Career Choice program, launched in 2012, has supported more than 240,000 participants with prepaid education. The company’s mission is to be Earth’s most customer-centric organization according to its 2024 Annual Report.
