Costco Raises Hourly Wages for U.S. Workers to Over $30

ISSAQUAH, Wash. — Costco Wholesale announced this week that it will raise hourly wages for most of its U.S. store employees to more than $30, according to a company memo. The pay increase, which will be implemented over the next three years, comes as the retailer faces pressure from unionized workers ahead of a contract negotiation deadline.

The memo, signed by CEO Ron Vachris, states that top-scale employees will see their hourly pay rise by $1 to $30.20 in the first year, with an additional $1 increase in each of the following two years. Entry-level workers will also receive a 50-cent raise, bringing their minimum wage to $20 per hour.

The decision follows a vote earlier this month by members of the Costco Teamsters union, which represents more than 18,000 employees, to authorize a strike if a new contract agreement is not reached by Jan. 31. Approximately 85% of union members supported the strike authorization.

“With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry,” the company said in the memo.

Costco, known for its competitive wages and benefits, has long been a leader in the retail sector. The latest pay hike underscores the company’s efforts to retain workers in a tight labor market and maintain its reputation as an employer of choice.

The wage increases come amid broader labor unrest in the retail and service industries, where workers have increasingly demanded better pay and working conditions. Costco’s move could set a benchmark for other retailers facing similar pressures.

Union representatives have not yet commented on the wage announcement, but negotiations are expected to continue as the Jan. 31 deadline approaches.