Sept 17 (Reuters) - Amazon.com ( AMZN ) said on

Wednesday it is investing more than $1 billion to raise pay and

lower healthcare costs for U.S. fulfillment and transportation

employees, pushing up the average total compensation to over $30

an hour including benefits.

The technology giant said the average pay would increase

to more than $23 per hour, adding that full-time employees will

see their pay increase by $1,600 per year, on average.

The company is lowering the cost of its entry-level

health care plan to $5 per week and $5 for co-pays, starting in

2026, representing a 34% drop in weekly contributions from

employees.

Amazon ( AMZN ) had more than 1.5 million full-time and part-time

employees at the end of last year. The company also hires

temporary workers and independent contractors seasonally,

particularly around the crucial holiday season.

Last year, Amazon ( AMZN ) workers at seven U.S. facilities had

walked off

the job during the holiday shopping rush, after union

officials said the retailer had failed to come to the bargaining

table to negotiate contracts. Employees were protesting what

they said was Amazon's ( AMZN ) unfair treatment of its workers.

In December, Amazon ( AMZN ) also agreed to

implement

safety measures at all of its U.S. facilities to settle a

federal agency's claims that it failed to prevent workers from

developing back problems and other ergonomic injuries.