Is Costco’s paycheck as bulk-sized as its products? We got the inside scoop, straight from Costco employees.
This Is How Much Costco Employees Really Make
Updated on Mar. 12, 2025
If you’ve ever wandered the aisles of Costco, marveling at the giant tubs of peanut butter or debating whether you really need a special-edition LEGO set (spoiler: you do!), you might have wondered, What’s it like to work at this big-box store? And how much does an employee at Costco make?
“I’ve worked for Costco for nine years and can honestly say I love it,” says Emily Marx, a warehouse supervisor at a Colorado Costco. “I do feel like Costco cares about its employees, and my co-workers have become like family.”
You’re probably not surprised to hear this. Costco has a reputation for treating its employees well, and you may have heard that it pays better than most retail jobs. Plus, the company is still dedicated to DEI practices. But does Costco pay well? We asked Marx, along with two other Costco employees of nearly 30 years—Mary Smith* and Jack Jones*—to answer that question and share what it’s really like to work there.
Read on to dive into the numbers and find out if a Costco name tag comes with a paycheck worth bragging about.
*Employee names have been changed.
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How much does an employee at Costco make?
Costco has a reputation for paying its employees well above the industry standard, but what exactly do they pay? Before we can answer that question, you need to understand the unique pay structure Costco uses.
Your pay depends on how long you’ve worked there and your role, says Smith, a Costco auditor who has worked at one of the highest-volume Costcos in America for 28 years and has held almost every position there, including cashier, floor worker, electronics salesperson and supervisor. “I started part-time, at the bottom of the pay scale and have worked my way up, so I’ve seen it all firsthand,” she says.
There is a pay range assigned to each role, but it really depends on how long you’ve worked there. Everyone starts part-time, and once an employee reaches 1,040 hours (which usually takes about nine months), they are eligible for conversion to full-time status and receive a $1-per-hour pay increase, which also happens every year thereafter. Full-time employees who work 2,080 hours or more annually (that’s 12 months if you work 40 hours a week), receive raises every six months. After about five years of full-time work, employees can qualify for the top pay in their role.
Costco releases a new employee handbook every three years that sets the pay range for each position, along with bonuses and other benefits. These are the same no matter which warehouse you work at, says Jones, another Costco auditor who’s worked for the company for nearly 30 years. “It’s not without its flaws, but it’s a good system overall—very fair,” he says. “I’ve gotten a raise every single year I’ve been here.”
Jones says that between his base hourly rate at the supervisor level plus his benefits and bonuses, he makes about $100,000 per year. Smith gets paid about the same, since she has nearly the same number of years of experience and the same job level. Marx makes about $63,000 per year.
Average Costco salaries in 2025
Here’s a look at the average salaries for different roles at Costco:
- Assistant: Starts at $20 per hour to $31 per hour. Everyone starts as an assistant, the entry-level position. Assistants do things like stock shelves and bring in carts.
- Clerk: Up to $31 per hour. Clerks refer to any position that works with money, like a cashier. A cashier’s salary at Costco will be based on this hourly rate, plus bonuses and overtime.
- Supervisor: The base pay the employee was making as a clerk, plus an extra $1 per hour on top of that. There are many different supervisors in every Costco, each covering a department of the store.
- Managers and assistant managers: $75,000 to $95,000 per year. This role is where it switches from hourly to salaried. There are managers for each department in the store and assistant managers who help the warehouse manager run the store.
- Warehouse manager: $150,000 to $300,000 per year. The warehouse manager is in charge of running everything at that location. Note: Many websites list the pay rate for warehouse managers much lower (around $80,000 to $100,000 per year), but all of our sources say that the total compensation for these employees is the range we list here.
- Pharmacy technicians: $20 to $25 per hour. Techs fill prescriptions, stock medications and help the pharmacist.
- Pharmacists: $60 per hour or more.
- Optometrists: $100,000 per year or more.
Costco wage raises in 2025
In January 2025, the Teamsters union, representing 18,000 Costco employees, threatened to strike over wage increases. A tentative agreement was reached on January 31, averting the strike, though the terms were not disclosed. Costco emphasized its commitment to competitive pay for both union and non-union employees.
As of March 2025, the new employee agreement has taken effect, raising Costco’s minimum wage to $20 per hour and the average wage to over $31 per hour in the U.S. and Canada. The deal also includes a $1 immediate pay bump at the top of the scale, with additional $1 increases in March 2026 and 2027. First-year employees now receive paid vacation, while those with 30 years can take up to six weeks off.
CEO Ron Vachris told investors the agreement “reflects our continued commitment to provide industry-leading pay and benefits for our employees.”
How does this compare to similar jobs at other stores?
Compared to other big-box retailers, Costco comes out ahead. Here’s how it stacks up against competitors:
- Walmart: The average hourly wage for Walmart associates is around $14 to $16 per hour, with supervisors earning roughly $18 to $23 per hour.
- Target: Target increased its minimum wage in recent years, and employees generally earn between $15 to $24 per hour, depending on location and position.
- Sam’s Club: Costco’s main warehouse competitor pays similar wages to Walmart, with most positions falling in the $14 to $18 per hour range.
What else makes Costco a good place to work?
“The benefits are unmatched,” Marx raves. Jones agrees with her: “It’s allowed me to comfortably raise my family of five at a level I wouldn’t have been able to find anywhere else.”
So what are these benefits?
- Time-and-a-half pay on Sundays.
- Biannual bonuses ranging from $2,500 to $10,000 for both part- and full-time employees.
- Excellent health insurance: Full-time employees (and many part-time workers) receive comprehensive health insurance, including medical, dental and vision coverage. (Jones pays just $100 per paycheck with a $1,500 deductible for his family of five.)
- Three free Executive memberships.
- 401(k) retirement plans: Costco offers employer-matching contributions, helping employees save for the future.
- Paid time off: Employees earn paid vacation days, sick time and personal days, with benefits improving over tenure.
- Tuition reimbursement: Some positions come with tuition assistance for further education.
- Diversity, Equity and Inclusion (DEI) initiatives: Costco maintains a commitment to hiring a diverse workforce and promoting inclusivity in leadership.
What are the downsides to working at Costco?
While this all sounds amazing, all three of our sources shared some concerns about working at Costco as well. Their biggest issues?
- No regional pay scale. “Everyone gets paid the same regardless of where you live, Costco doesn’t adjust for cost of living,” Smith says. “And $19.50 an hour goes a lot further in Omaha than it does in San Francisco.”
- Pay isn’t adjusted by job. For instance, everyone at the “Clerk” level gets the same pay range, even though some jobs require much more work than others and require special training or skills. Smith points out that pharmacy techs, who “are literally dealing with people’s lives,” make about the same as the person bringing in the carts.
- Shifts can be physically demanding. This is true especially for stockers and warehouse workers.
- Weekend and holiday hours are often required.
- No performance-based raises or bonuses. Another issue, according to Jones, is that the pay structure “rewards loyalty more than hard work” because raises and bonuses are generally contingent on how long you’ve worked there, not on productivity. “This means people aren’t incentivized to work harder or go above and beyond.” (Salaried workers, however, can get incentive pay based on how well the warehouse is doing.)
How hard is it to get a job at Costco?
Costco’s generous pay and benefits make it a highly desirable workplace, and as a result, job openings can be competitive. Costco receives hundreds of thousands of applications per year. And because they have a low turnover rate, fewer open positions become available. Marx is proof of that. “I had to work incredibly hard just to get a job at Costco,” she says. “It’s not as easy as other retail jobs.”
Pro tip: Employee referrals are a common way to get hired, as Costco tends to prioritize internal promotions and recommendations.
So, if you’re hoping to land a job at Costco, be prepared for a potentially competitive hiring process, but know that if you get in, you’ll likely be part of a company that values and rewards its employees well above the industry norm.
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Sources:
- Mary Smith, auditor at a Pacific Northwest Costco; phone interview, Feb. 24, 2025
- Jack Jones, auditor at a Colorado Costco; phone interview, Feb. 23, 2025
- Emily Marx, warehouse employee at a Colorado Costco; email interview, Feb. 24, 2025
- The Guardian: “Strike averted at Costco as Teamsters reach a tentative deal”
- CBS News: “Costco clerks will soon make up to nearly $32 an hour “
