As an Amazon employee or prospective hire, you may be wondering whether the e-commerce giant offers a strong benefits package in 2024. With over 1.6 million employees globally, Amazon‘s benefits play a crucial role in attracting and retaining top talent.
In this comprehensive guide, we‘ll dive into the details of Amazon‘s benefits package, including health insurance, retirement plans, stock options, discounts, and more. We‘ll also look at how their offerings compare to other major employers and if part-time staff receives the same perks.
An Overview of Amazon‘s Benefits Package
Overall, Amazon provides a robust set of benefits for employees that starts on their first day of work. Some of the most valuable offerings include:
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Health Insurance – Amazon offers comprehensive medical, dental, and vision plans. They cover between 65-85% of healthcare expenses.
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401(k) Plan – Employees get a 401(k) retirement plan with a 5% company match. The match vests immediately.
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Stock Options – While not given automatically, workers can purchase stock at a discount and receive restricted stock units.
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Employee Discounts – Amazon staff gets 20% off Amazon purchases and discounted Prime memberships.
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Parental Leave – Birth parents receive up to 20 weeks of paid leave. Adoptive parents get up to 12 weeks paid.
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Career Training – Amazon offers fully-funded career skills training and college tuition assistance.
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Wellness Programs – The company provides resources to support employees‘ physical, financial, and mental health.
Next, we‘ll explore the most popular benefits in more detail, including eligibility requirements.
Health Insurance Plans
One of the most valuable benefits Amazon offers is health insurance. Their plans aim to give employees affordable access to top-notch healthcare.
Amazon provides the following health insurance options:
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Comprehensive PPO – This plan offers in- and out-of-network coverage options. However, using in-network providers results in lower deductibles and out-of-pocket costs.
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High Deductible PPO – For those wanting lower premiums, this plan has higher deductibles but becomes very affordable once the deductible is met.
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HMO – With an HMO, employees select a primary care physician within the plan‘s network who coordinates all care. Out-of-network care isn‘t covered.
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Dental & Vision – Separate dental and vision plans are available delivering preventive and basic care.
Amazon covers between 65-85% of medical premiums and 50% of dental and vision premiums. Employees can enroll in health insurance immediately upon hire.
Coverage extends to spouses, domestic partners, and children up to age 26. The plans have copays for doctor visits and prescription drugs to limit out-of-pocket costs.
Retirement Benefits
Amazon aims to help employees save and plan for retirement through the following benefits:
401(k) Plan
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5% Company Match – Amazon matches 100% of employee 401(k) contributions up to 5% of their salary.
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No Waiting Period – The match starts immediately upon 401(k) enrollment. Many companies make workers wait 6-12 months.
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Immediate Vesting – Employees own the matching funds right away instead of vesting over several years.
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Roth 401(k) Option – Along with traditional pre-tax 401(k) contributions, the plan offers after-tax Roth contributions.
Stock Purchase Plan
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10% Discount on Stock – Employees can purchase Amazon stock through payroll deductions at a 10% discount.
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No Fees – There are no fees to enroll or purchase stock via the plan.
Equity Compensation
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Restricted Stock Units (RSUs) – Employees may receive RSUs, which are company stock units that vest over time.
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Purchase Discounts – RSU recipients can use vested RSUs to buy more Amazon stock at a discount.
Employee Stock Options
While Amazon employees aren‘t granted stock options automatically, they can still benefit from stock ownership in a few ways:
Stock Purchase Plan
As mentioned, all employees can buy Amazon stock at a 10% discount through automatic payroll deductions. Purchasing shares at a discount helps employees profit as the stock value rises over time.
Restricted Stock Units (RSUs)
Some employees may receive RSUs based on performance, length of service, or job level. RSUs are shares that vest to employees over 1-5 years if they remain at Amazon.
Once vested, RSUs convert to actual Amazon shares that the employee owns. They can choose to keep or sell the shares.
Employee Stock Ownership Plan (ESOP)
Amazon may offer an ESOP that lets employees buy even more shares on top of the purchase plan. ESOP participants can purchase shares with after-tax dollars.
Though not stock options with set strike prices, these plans still help Amazon staff build wealth through stock ownership.
Additional Amazon Employee Perks
Besides the major medical and retirement benefits, Amazon offers some other valuable perks.
Employee Discount
One of the most popular is 20% off Amazon purchases. Items sold directly by Amazon qualify, which is a huge number of products!
Employees also get discounts on additional services like Audible audiobooks. The savings quickly add up.
Amazon Prime
Workers receive a free Amazon Prime membership with access to Prime delivery plus entertainment like movies and music.
Family members can also be added for a discounted Prime rate of $12.99 per month (50% off).
Career Training
Amazon provides full tuition coverage and stipends for approved certificate programs and degrees related to in-demand fields at Amazon.
For roles like cloud computing and data science, Amazon even pays employees to train for 14-17 weeks and guarantees a job offer after completion.
Parental Leave
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Birth parents get up to 20 weeks of paid leave after having or adopting a child.
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Adoptive parents who aren‘t the primary caregiver receive up to 12 weeks paid leave.
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Amazon also provides subsidized family health insurance while on leave.
Vacation & Sick Leave
Employees accrue paid time off for vacations and illnesses:
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Vacation: 3 weeks in year 1, increasing with tenure
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Sick Leave: 6 days per year
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Holidays: 10 paid holidays
Employee Assistance
Free 24/7 phone counseling, legal advice, and referral services are available to help with challenges like depression, relationships, parenting, and more.
Gym Discounts
Amazon partners with gyms like 24 Hour Fitness to offer employees reduced membership rates and workout perks.
As you can see, Amazon offers a lot more beyond just the medical and retirement benefits. The goal is to support employees‘ whole lives with programs that matter.
How Amazon Benefits Compare to Other Companies
Overall, Amazon is known for having one of the most competitive and innovative benefits packages compared to other major employers.
Here‘s a quick look at how some of their top offerings stack up:
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Health Insurance – Amazon covers a higher percentage of premiums than competitors like Walmart and Target. The monthly premiums for Amazon plans can be up to 50% less.
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401(k) Match – A 5% match is at the high end, with most companies falling in the 3-4% range. Immediate vesting also isn‘t the norm.
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Stock Purchase – Getting a 10% discount on stock purchases is better than most. And having zero purchase fees is uncommon.
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Parental Leave – Twenty weeks paid leave for birth parents is hard to beat. Many companies offer only 2-3 months paid.
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Worker Discounts – Twenty percent off Amazon purchases provides huge savings potential for employees.
In addition, Amazon consistently receives high marks for its family benefits like parental leave and adoption assistance.
Overall, Amazon‘s package remains competitive and innovative compared to other major retailers. The breadth of benefits demonstrates why Amazon is still considered an employer of choice.
Do Part-Time Amazon Employees Get Benefits?
A common question is whether part-time Amazon employees receive benefits too.
The answer is yes – all regular part-time and full-time U.S. employees are eligible for the same benefits package. The only difference is that part-time employees working 20-29 hours per week accrue paid time off at half the full-time rate.
However, part-timers do receive the full employee discount, free Prime membership, stock purchase plan, 401(k) match, parental leave, and insurance benefits.
The only exceptions are some state-specific mandates that require things like paid sick leave for part-time workers. But overall, Amazon does a great job extending core benefits to part-timers.
Here‘s a quick recap of the key benefits part-time staff receive:
- 20% employee discount
- Free Amazon Prime membership
- 401(k) plan with 5% company match
- Health, dental, and vision insurance
- Stock purchase plan
- Parental leave
- Tuition assistance
- Employee assistance program
Offering such a robust package attracts skilled part-time employees who value those perks. It‘s a win-win for Amazon and staff seeking good benefits in a part-time schedule.
Do Amazon Employees Get Free Prime or Just Discounts?
As mentioned earlier, one of the top perks is free access to an Amazon Prime membership. To clarify, the benefit works like this:
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Amazon Employees – Get a free personal Prime membership while employed at Amazon.
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Spouses & Partners – Can be added to the employee‘s Prime account for $12.99 per month (50% off).
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Teens & Children – Can access benefits by linking their account to the employee‘s Prime household.
So employees enjoy Prime at no cost whatsoever. Plus, the discounted add-on price for partners and teens provides an awesome household value.
The Prime membership includes:
- Free 2-day shipping on eligible items
- Instant access to Prime Video movies & TV
- Ad-free Prime Music streaming
- Unlimited photo storage with Amazon Photos
- Access to Prime Reading ebooks
- Exclusive Prime Day deals
As an added bonus, employees also receive 20% off on items sold directly by Amazon. That‘s basically anything fulfilled by or shipped from Amazon.
Between the free Prime and 20% discount on Amazon purchases, employees have the potential to save a ton of money!
Conclusion: Amazon Benefits Are Strong for Employees
After reviewing Amazon‘s available benefits, it‘s clear they offer an attractive package that provides valuable support for employees.
The benefits start on day one and include competitive health insurance, retirement plans, paid parental leave, employee stock options, hefty product discounts, and more.
While salaries at Amazon are fairly competitive, their benefits package gives them an edge compared to many other retailers. The breadth of benefits demonstrates Amazon‘s commitment to taking care of employees.
Prospective or current employees at Amazon can feel confident they will receive an industry-leading benefits package. Perks like Prime and stock options help deliver financial value that boosts overall compensation.
Whether you‘re a part-timer or full-timer, Amazon has you covered with benefits that matter. For those seeking good pay with even better perks, Amazon should be on your radar.
