Costco Hourly Pay Raise in 2025: What You Need to Know

In a significant move to enhance employee compensation, Costco has announced a series of hourly pay increases for its workers, marking a substantial improvement in wages for hundreds of thousands of employees across the United States and Canada.

Wage Increases and New Pay Scales

As part of a new three-year employee agreement, Costco is set to raise the hourly pay for many of its workers. Starting in March 2025, top-of-the-scale clerks will earn \$31.90 per hour, while top-of-the-scale assistants will receive \$30.20 per hour. These figures represent a notable increase, with some employees seeing their wages rise by as much as \$1 per hour immediately, and additional \$1 hourly increases scheduled for March 2026 and March 2027.

For those at the lower end of the pay scale, bottom-of-scale clerks and assistants will see their hourly wages increase by 50 cents, bringing their earnings to \$21 and \$20 per hour, respectively. This adjustment aims to ensure that all employees benefit from the new agreement.

Tentative Agreement with the Teamsters Union

The pay hikes come as a result of a tentative agreement reached between Costco and the Teamsters union, which represents approximately 18,000 Costco workers in six states: California, Washington, Maryland, Virginia, New Jersey, and New York. This agreement averted a potential strike, as Teamsters members had previously voted in favor of striking if a new contract was not agreed upon by the expiration of the current contract.

The labor agreement with the Teamsters applies to less than 10% of Costco's U.S. stores, but it sets a precedent for improved wages and benefits across the company. Costco employs 272,000 people across the United States and Canada, with 219,000 of those employees based in the U.S. and working across 617 stores.

Additional Benefits

In addition to the wage increases, the new agreement includes several other benefits for Costco employees. New employees will now receive vacation time during their first year, a significant improvement from previous policies. Furthermore, long-serving employees will benefit from an additional week of time off after 30 years of employment, bringing their total annual leave to six weeks.

Commitment to Competitive Compensation

Costco's decision to raise wages reflects the company's commitment to offering competitive compensation and benefits that surpass industry standards. According to Ron Vachris, CEO of Costco, "We believe our hourly wages and benefits will continue to far outpace others in the retail industry." This stance underscores the company's dedication to valuing its workforce and ensuring that employees are well-compensated for their work.

Implementation and Future Increases

The immediate wage increases are just the beginning, as the new agreement outlines future pay hikes. The scheduled \$1 hourly increases in March 2026 and March 2027 will further boost the earnings of Costco's employees, ensuring that they continue to receive competitive wages over the next few years.

Costco's decision to raise hourly pay is a significant step forward in employee compensation, reflecting the company's commitment to its workforce and its position as a leader in retail industry wages and benefits. As the retail sector continues to evolve, Costco's approach sets a high standard for other companies to follow.