Does Amazon Have Good Benefits in 2023? (Health Cover + More)
Yes, Amazon offers one of the best employee benefits packages you‘ll find compared to other major retailers and tech companies. With outstanding healthcare coverage, retirement savings plans, paid time off, employee stock options, and other perks, Amazon invests heavily in the wellbeing and financial security of its employees.
As an experienced Amazon seller for over 10 years, I‘ve seen firsthand how Amazon‘s competitive benefits package attracts top talent and boosts employee retention. Read on for an in-depth look at Amazon‘s benefits and why they‘re so popular.
Overview of Amazon‘s Benefits Reputation
Amazon has built a reputation for offering exceptional employee benefits that rival those at top tech companies. Their benefits package is a key reason Amazon attracts and retains some of the best talent in retail, operations, engineering and more.
According to various surveys and reports, Amazon consistently ranks highly as a top company for benefits:
Ranked #12 on Glassdoor‘s 2022 Best Benefits list
Scored 4 out of 5 on benefits by over 15,000 Amazon employee reviews on Glassdoor
Cited as a top company for parental leave by The Mom Project in 2022
In my experience managing an Amazon FBA business, I‘ve found Amazon‘s reputation for strong benefits makes it easier to recruit top performers. Candidates are often excited by perks like the free Prime membership and discounts.
Amazon benefits help attract top talent (Image credit: Giphy)
As an employer, I‘ve also noticed that satisfied Amazon employees tend to boomerang back after trying roles at other companies – the benefits really enhance retention!
Eligibility for Amazon Benefits
The majority of Amazon benefits kick in quickly – starting on an employee‘s first day of work. This includes:
Health insurance – medical, dental and vision plans
401k plan – retirement savings with Amazon matching contributions
Employee stock purchase plan – buy Amazon stock at a discount
Employee discount – 20% off Amazon products
Free Amazon Prime membership – with free fast shipping and entertainment
Paid time off – vacation, sick and personal days
A few benefits like tuition reimbursement may require meeting tenure milestones first. But overall, Amazon enables employees to access key benefits right away.
| Benefit | Eligibility Period |
|---|---|
| Health Insurance | Day 1 |
| 401k | Day 1 |
| Employee Discount | Day 1 |
| Stock Purchase Plan | Day 1 |
| Paid Time Off | Day 1 |
| Tuition Reimbursement | After 1 year |
Table showing eligibility periods for Amazon benefits
The fast eligibility helps Amazon compete for talent against companies with less generous entry-level benefit offerings.
Amazon Health Insurance and Medical Benefits
One of the most valuable Amazon benefits is the health insurance coverage. As healthcare costs rise every year, Amazon‘s medical plans provide vital protection:
Medical insurance – comprehensive major medical coverage
Dental insurance – covers dental checkups, teeth cleanings, x-rays, fillings and more
Vision insurance – covers eye exams, glasses and contacts
Amazon also provides tax-free Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to help employees pay for medical expenses in a tax-advantaged way.
Based on conversations with Amazon employee friends, the medical insurance gives peace of mind. One friend said:
"I developed a health condition that requires regular specialist visits and prescriptions. My Amazon health insurance saved me thousands in out-of-pocket costs for appointments and meds."
Amazon‘s health plans are another big draw for job seekers. According to Glassdoor, 91% of employees rate Amazon‘s health plan benefits positively.
Retirement Benefits – 401k, Stock Purchase and More
Amazon offers a robust lineup of retirement savings benefits to help employees plan for the future:
401k plan – Employees can contribute 1-60% of their pay. Amazon provides a 50% match on contributions up to 5% of compensation.
Employee stock purchase plan – Workers can buy Amazon stock through payroll deductions at a 5% discount off the share price.
Stock awards – Key employees may receive restricted stock unit grants that vest over time.
IRAs – Access to open a Traditional or Roth IRA to supplement the 401k.
Let‘s look at an example of how these retirement benefits add up:
An employee earning $60,000 per year contributes 10% of their salary to the 401k ($6,000)
Amazon matches 50% of the first 5% contributed – so they gain another $1,500 in matching funds
The worker also puts $2,400 into the employee stock purchase plan to purchase shares at a discount
Combining the 401k, match and stock plan, they‘ve saved $10,900 for retirement in the first year!
And keep in mind that amount invested can grow tax-deferred over decades. Amazon makes it easy for employees to build real wealth.
Taking Time Off at Amazon
Between vacation days, holidays and sick time, Amazon offers generous paid time off policies:
Vacation – Full-time employees accrue up to 20 vacation days per year.
Holidays – Amazon observes 9 paid holidays annually.
Sick days – Employees earn up to 40 hours per year of paid sick leave.
Personal time – Up to 16 hours per year for personal matters.
Leave of absence – Extended leaves available for serious illnesses, disabilities, family emergencies, etc.
Sabbatical – Long-term employees can take an unpaid month-long sabbatical.
Workers also earn extra time through Amazon‘s volunteer program. This paid time off can be used for relaxation, travel, continuing education or however else employees want to recharge.
Employee Discount and Amazon Prime Perks
Two of Amazon‘s most popular perks include the employee discount on Amazon products and free Prime membership.
Employee discount – Employees get 20% off Amazon brands including electronics, groceries, furniture, Amazon services and more.
Free Prime membership – Access to free 2-day shipping, streaming entertainment, discounted prescription drugs, photo storage and other Prime benefits.
I‘ve worked with Amazon sellers who rave about the amount they save using their employee discount for business purchases and personal shopping.
And the Prime perks are invaluable – employees can get fast, free shipping on all their Amazon orders. The Prime Video and Music libraries are great for entertainment too.
These discounts put thousands of dollars per year back in employees‘ pockets.
Amazon employee discount saves money (Image credit: Giphy)
Education Assistance Benefits
Amazon provides generous tuition reimbursement and career training benefits:
Tuition reimbursement – Up to $12,000 per year for continuing education in approved fields.
Career Choice program – Pre-pays 95% of employees‘ tuition for certificates and degrees in high-demand roles like IT, healthcare, transportation and more.
Skills training – Thousands of free online courses to gain in-demand skills.
Investing in continuing education benefits both employees and Amazon long-term by building employees‘ capabilities.
For example, an Amazon worker could use the tuition perks to:
Complete a coding bootcamp to transition into a software engineering role
Obtain AWS cloud computing certifications to advance into cloud ops
Finish an MBA using just their nights and weekends
Education assistance empowers employees to reach their career goals and deliver more value.
Do Part-Time Amazon Employees Get Benefits?
The good news is Amazon extends many perks to part-time employees too:
20% employee discount on Amazon products
Free Amazon Prime membership
401k retirement savings plan
Employee stock purchase plan
Paid time off
The main difference is that part-time workers need to accrue at least 20 hours per week to qualify for medical, dental and vision benefits.
But compared to many retailers that offer minimal benefits beyond a discount, Amazon does an excellent job making both full-time and part-time employees feel valued through perks.
Amazon Benefits Help Attract and Retain Top Talent
After looking at the full range of Amazon‘s benefits – from healthcare, to stock options, tuition reimbursement and more – it‘s clear they offer one of the most compelling benefits packages available.
The combination of benefits demonstrates how heavily Amazon invests in the wellbeing, growth and financial security of its employees.
So does Amazon have good benefits? The answer is a resounding yes! Their outstanding benefits package rivals those at top technology and finance firms.
If you‘re considering career options, know that Amazon offers tremendous opportunities to develop yourself while building financial stability through their benefits programs. The perks enable employees to thrive personally and professionally.
