Costco raises minimum wage to $20, average hits $30/hour

Costco just proved that paying workers well and running a successful business aren't mutually exclusive. The retail giant announced in March 2025 that it's raising its minimum wage to $20 per hour, with the average U.S. and Canadian employee now making over $30 hourly.

CEO Ron Vachris shared the news with investors, explaining that the company's new employee agreement includes immediate $1 raises for top-scale workers. Additional dollar increases are scheduled for March 2026 and March 2027, ensuring wages keep pace with rising costs.

The benefits extend beyond base pay. First-year employees now get paid vacation time, a rare perk in retail. Workers who've dedicated 30 years to the company can take up to six weeks off annually.

According to job platform Bandana.com, entry-level positions like stockers and assistants earn around $31 per hour. Warehouse managers can pull in salaries topping $114,000 annually. Sunday shifts pay 1.5 times the regular hourly rate.

The company rewards loyalty with structured raises every 1,040 hours worked (about six months full-time). These bumps start at $1 per hour and can reach $1.90. After six years, employees become eligible for annual bonuses averaging over $5,500.

Why This Inspires

Reddit threads filled with Costco employees sharing their experiences reveal why these numbers matter. One tire technician called it "the best company I've ever worked for," citing not just the pay but the entire benefits package. Another employee who switched from Fred Meyer saw a $15,000 annual pay increase for the same position.

A forklift driver noted that many warehouses have dozens of employees with 25-plus years at the company. That kind of retention is nearly unheard of in retail, where turnover typically runs rampant and costly.

The healthcare benefits impressed one tire tech who pays just $25 monthly for Ozempic. Another employee started as a cart pusher and now makes $160,000 in a non-management role, proof that Costco creates genuine paths to financial stability.

One mother shared how the company let her step down to part-time when family needs changed, working with her schedule instead of forcing an impossible choice. That flexibility, combined with competitive maternity leave, shows how Costco's culture extends beyond the paycheck.

The company also periodically throws in 50-cent to $1 raises based on inflation and cost of living, adjusting to economic realities without being asked. Forklift operators earn an extra dollar per hour when actively driving equipment, recognizing the specialized skill.

In an economy where many workers juggle multiple jobs to make ends meet, Costco is building a model that proves different choices are possible.