Amazon Employees Benefits and Perks

Amazon Employees Benefits and Perks
Last Updated: October 18, 2023

This article will explore the extensive range of Amazon employees' benefits and perks. The success and well-being of its employees are valued highly at Amazon. Amazon provides a whole package intended to draw in and keep top personnel.

Competitive Compensation Packages:

Amazon understands the importance of fair compensation and offers highly competitive packages to its employees. These comprehensive compensation plans include base salaries, performance-based bonuses, stock options, and other incentives. In 2018, Amazon set an industry benchmark by raising its minimum wage to $15 per hour for all U.S. employees, benefiting over 350,000 workers and demonstrating its commitment to equitable pay practices.

According to an article from Reuters, Amazon's warehouse and transportation workers will receive an increased average starting pay of more than $19 per hour from $18. Employees earn between $16 and $26 per hour, depending on their position and location in the United States.

Related: Amazon Jobs in Houston, TX: What you need to know

Healthcare and Wellness Benefits:


  1. Healthcare Coverage: Amazon provides robust medical, dental, vision, and prescription drug coverage to eligible employees and their families. This comprehensive healthcare package ensures employees can access quality medical services when needed. [Read More]
  2. Neighborhood Health Centers: In select regions and cities, Amazon offers the convenience of Neighborhood Health Centers, providing accessible healthcare services for employees and their families.
  3. Amazon Care: With Amazon Care, employees can initiate virtual primary or urgent care visits from the comfort of their homes, emphasizing the company's commitment to convenient and accessible healthcare solutions.
  4. Paid Parental Leave: Amazon recognizes the importance of family bonding and offers up to 20 weeks of fully paid parental leave, supporting employees during significant life events and promoting work-life balance. This makes Amazon employees part of the 23% of working Americans with paid parental leave.
  5. Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA): Employees can contribute to an HSA for tax-free healthcare savings, with possible employer contributions. Additionally, FSAs are available to help employees manage eligible medical and dependent care expenses.
  6. Mental Health Support and Daily Living Assistance: Recognizing the significance of mental health and the importance of supporting employees' overall well-being, Amazon provides comprehensive mental health support and daily living assistance programs. The following services are available:

Related: Employee Health Insurance: Trends you need to know

 Free Counseling Services:

  • Amazon offers free counseling services and referrals that are accessible 24/7 for both Amazon employees and members of their households. This ensures that employees and their loved ones can access professional support.
  • Employees can receive up to five free counseling sessions per issue per year. These sessions can be conducted virtually or in person, providing flexibility and convenience for employees seeking mental health support.

Referrals for Legal, Financial, and Personal Needs:

  • In addition to counseling services, Amazon offers referrals to resources for legal and financial issues. This helps employees navigate legal or financial challenges, providing appropriate guidance and support.
  • Referrals are also available for personal convenience and care needs, including child care, elder care, relocation assistance, and other personal needs. Amazon recognizes that personal issues can impact an employee's well-being and provides resources to help employees get the support and assistance they need.

By offering free counseling services, referrals, and support for various personal needs, Amazon demonstrates its commitment to prioritizing mental health and overall quality of life for its employees. These services are intended to relieve stress, provide assistance, and ensure that employees can access the resources required to address mental health difficulties and effectively manage daily life challenges.

Employees must use these mental health support programs and the referrals given as necessary. Employees may improve their mental health, overcome personal problems, and maintain a healthy work-life balance by getting help ahead of time.

[Read More]

Amazon Employees Benefits and Perks

Related: Amazon Leadership Principles

Retirement and Financial Planning:

Amazon provides employees with a comprehensive retirement savings plan through its 401(k) plan, accompanied by other ownership opportunities and flexible spending accounts (FSAs). Here are the details:

1.     Amazon 401(k) Plan:

  • Matching Contributions: For every $1 of employee contribution (up to 4% of eligible pay), Amazon matches $0.50, up to a maximum of 2% match. Catch-up contributions are not matched.
  • Vesting: Employees become vested in matching contributions after three years of credited vesting service, with a year of vesting service defined as completing 1,000 hours of service in a calendar year.
  • Contribution Options: Employees can contribute from 1% to 90% of their eligible pay on a pre-tax basis, Roth, or traditional after-tax basis, subject to the annual IRS limits. The 2023 IRS limit is $22,500, with an additional catch-up contribution of $7,500 available for those aged 50 or older.
  • Eligibility: All Amazon employees aged 18 or older can join the plan immediately upon their hire date, with enrollment typically available within ten business days through Fidelity.

2.     Employee Restricted Stock Units (RSUs):

  • Ownership Opportunities: Most Amazon employees can become company owners through granting and vesting RSUs. The granting and vesting process follows plan documents and gives employees ownership over time.
  • Additional Grants: Depending on job level and scheduled hours (30+ hours per week), employees may be eligible for additional RSU grants. Amazon continuously explores other ownership opportunities for all employees.

3.     Flexible Spending Accounts (FSAs):

As per the information on their official website, a flexible spending account (FSA) is a healthcare benefit provided by employers. It enables employees to allocate up to $2,750 annually from their pre-tax income to pay for eligible medical expenses. This arrangement allows individuals to save nearly $3,000 annually, typically allocated towards taxes.

  • Health Care FSA: The Health Care FSA allows employees to pay for eligible health care expenses, such as copays, deductibles, and services not covered by medical, dental, or vision plans. Contributions to the Health Care FSA lower taxable income, reducing federal income and Social Security taxes. The minimum contribution is $120, with a maximum of $2,850 per plan year. Employees enrolled in the Health Savings Plan with a Health Savings Account (HSA) are not eligible for the Health Care FSA.
  • Dependent Care FSA: The Dependent Care FSA covers expenses for dependent care while employees work, such as child or elder care. Contributions to the Dependent Care FSA lower taxable income. The minimum contribution is $120, with a maximum of $5,000 per plan year.

In summary, Amazon provides employees with opportunities to save for retirement through the 401(k) plan, become company owners through RSUs, and enjoy the benefits of FSAs for health care and dependent care expenses. These programs contribute to employees' financial well-being and help them plan for a secure future.

Related: Amazon and Walmart Pay Practices

Work-Life Balance and Flexible Schedules:

  1. Paid Time Off (PTO): Amazon offers a generous PTO policy, allowing employees to take time off for vacations, personal needs, and holidays. The amount of PTO granted increases with tenure, ensuring long-term employees are rewarded for loyalty. [Read More]
  2. Flexible Work Arrangements: Amazon embraces changing work dynamics and provides flexible work arrangements, including remote work options and alternative schedules when feasible. This flexibility enables employees to balance personal and professional responsibilities effectively.

Career Development and Education:

  1. Training and Development Programs: Amazon prioritizes the growth and development of its employees by implementing a range of training initiatives. These initiatives encompass classroom-style learning and online training modules, empowering employees to improve their skills and advance their careers. To achieve its objectives by 2025, Amazon has announced two significant investments. Over $1.2 billion will provide free education and skills training opportunities for more than 300,000 U.S.-based employees. The primary goal is to support these employees in securing new, high-growth job opportunities. Additionally, through public programs, Amazon will invest hundreds of millions of dollars to offer free cloud computing skills training to approximately 29 million individuals worldwide.
  2. Tuition Assistance: Amazon's Career Choice program offers tuition assistance for employees pursuing education in fields relevant to their roles or in-demand jobs. The program covers up to 100% of tuition and fees, ensuring employees have access to educational opportunities that can drive long-term career growth.

Additional Benefits and Perks:

  1. Employee Discounts: Amazon employees enjoy discounts on Amazon products and exclusive deals from partner companies, fostering a sense of community and providing tangible benefits.
  2. Employee Assistance Program (EAP): Amazon offers a 24/7 EAP, providing confidential support and resources for employees dealing with personal and work-related issues. This program ensures that employees can access the assistance they need during challenging times.
  3. Referrals for Child and Elder Care: Amazon assists employees in finding suitable child and elder care resources, recognizing the importance of family support and work-life balance.
  4. Disability Insurance: Amazon recognizes the importance of providing financial protection to its employees in the event of a disability. For employees working 30+ hours per week, Amazon offers both short-term and long-term disability coverage, with the following details:

Short-Term Disability (STD) Coverage:

  • Coverage: Amazon provides short-term disability coverage at no cost to employees. This coverage offers partial income replacement, equivalent to 60% of the eligible salary, up to certain limits, in case of a medically determined disability.
  • Waiting Period: There is a 7-day waiting period for short-term disability benefits. Once the waiting period is completed, benefits are paid for up to 26 weeks.
  • Pregnancy Disability Coverage: Short-term pregnancy disability coverage is available for birth parents, ensuring coverage for both pre-partum and post-partum periods. This coverage equals 100% of basic earnings for up to 4 weeks before the birth and 10 weeks after the birth. For pregnancy-related disabilities, the waiting period remains 7 days, but the pay is retroactive to the first day of disability.

Long-Term Disability (LTD) Coverage:

  • Coverage: Amazon provides long-term disability coverage at no cost to employees. This coverage offers financial protection in case of an extended disability.
  • Waiting Period: There is a 180-day waiting period for long-term disability benefits. Once the waiting period is completed, benefits are paid for an extended period based on the severity of the disability and other factors.
  • Pre-Existing Condition Exclusion Provision: The LTD plan includes a pre-existing condition exclusion provision, which means that any disability resulting from a pre-existing condition may not be covered during the initial coverage period.

Related: Amazon Human Resources Management: What you need to know

These disability insurance plans aim to provide employees with financial support during periods of disability, ensuring they can maintain a certain level of income and financial stability. By offering both short-term and long-term disability coverage, Amazon demonstrates its commitment to supporting employees' well-being and helping them navigate unforeseen circumstances that may impact their ability to work.

Employees must familiarize themselves with the specific terms, conditions, and limitations of the disability insurance plans offered by Amazon to understand the extent of coverage and eligibility criteria.

As Amazon evolves and adapts, the firm will probably continue to improve employee benefits and perks to meet its staff's changing demands and expectations. Amazon offers a solid example for other organizations by prioritizing employee satisfaction and investing in their well-being, resulting in a more motivated, engaged, and productive workforce.

Overall, Amazon's comprehensive selection of benefits and incentives positions it as an employer of choice, ensuring that employees have the support and tools they need to flourish while maintaining a healthy work-life balance.

Please note that while we will discuss the extensive range of Amazon employee benefits and perks, it's important to remember that these offerings may vary based on the state and location. Different regulations and local considerations may impact the availability and specifics of certain benefits. Therefore, we encourage readers to confirm the details of the benefits and perks directly with Amazon or refer to their official documentation to ensure accuracy and applicability to their specific circumstances.

Ngonidzashe Nzenze
This article was written by Ngonidzashe a Consultant at Industrial Psychology Consultants (Pvt) Ltd

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