Costco is raising its minimum wage to $16 an hour for its U.S. store workers

An employee organizes Apple Inc. AirPods on the market at a Costco Wholesale Corp. store in San Francisco, California.

David Paul Morris | Bloomberg | Getty Images

Costco is raising its hourly minimal wage to $16, inserting its initiating wage above moderately diverse its competitors a lot like Amazon, Walmart and Very top Employ.

“Two years ago, we moved our initiating hourly wage to $15 in every single set of dwelling within the U.S. Nice subsequent week, the initiating wage will sprint to $16,” acknowledged Costco CEO Craig Jelinek at some stage in a Senate funds committee listening to on Thursday.

The retailer has bigger than 180,000 workers within the U.S. and 275,000 workers worldwide.

This transfer comes as Congress debates the $15 an hour federal minimal wage expand as phase of President Joe Biden’s $1.9 trillion Covid-19 reduction bill.

Target and Amazon each and every pay hourly workers on the least $15 an hour. Walmart’s minimal wage starts at $11 an hour, but it absolutely no longer too lengthy ago announced raises for 425,000 workers that can enhance the retailer’s common pay to above $15 an hour. Walmart is the nation’s largest employer.

Starting up in March of ultimate twelve months, the chain instituted a $2 an hour top rate to its workers to attend cushion the financial stress that the pandemic introduced to many individuals.

“As we manner the one-twelve months mark of this extra pay, we can limit the short top rate, but convert just among the highest rate to a permanent expand by raising every step on hourly wage scales,” acknowledged Jelinek.

Costco workers within the U.S. were with the company for over nine years on common, with bigger than 60% of its workers averaging five years or extra of service.

Costco has 803 areas worldwide, along side 558 in 45 U.S. states, Washington and Puerto Rico.

The company wasn’t straight out there to allege extra on its dedication.

Correction: The listening to took set of dwelling on Thursday. An earlier model of this memoir misstated the date.