Costco Just Raised Its Minimum Wage FAR Above Its Competitors
It's more than double the federal minimum wage.
We all love Costco for its great money-saving deals, extra membership perks and of course, all of the deals on grocery staples and home goods. But it’s not just customers who love the warehouse—the employees have plenty of reasons to love being there, too.
Now, Costco has added another perk to the list: they’re raising the minimum hourly wage for their workers, and it’s way more than most of their closest competitors.
What Is the Costco Minimum Wage?
The chain will start wages at $16 an hour, according to chief executive Craig Jelinek. With 90% of its 180,000 employees working hourly in the United States, this affects a lot of people—and the chain wants to point out that it’s a good thing for their workers and for the company.
Costco’s minimum hourly wage has been set at $15 for the last two years, but this latest increase puts them far ahead of competitors like Amazon, Best Buy and Target (all start at $15 an hour) and the country’s largest retailer, Walmart, which starts employees at $11 an hour. It also means their employees earn well beyond the current federal minimum wage of $7.25, which probably explains why, as the CEO says, “In the U.S., our employees average over nine years of service with the company.” That’s loyalty!
What Other Perks Do Employees Have?
While the best employer crown belongs to another retailer, Costco also gives two pay raises to full-time employees per year, and one pay raise to part-time employees, along with bonuses that can add up to $4,000 per year. Employees also get benefits like healthcare complimentary memberships to the store and a free turkey on Thanksgiving.
Guess we just found another reason to shop at Costco!