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

An worker organizes Apple Inc. AirPods for sale at a Costco Wholesale Corp. store in San Francisco, California.

David Paul Morris | Bloomberg | Getty Images

Costco is raising its hourly minimum wage to $16, placing its beginning wage above a lot of its rivals akin to Amazon, Walmart and Best Buy.

“Two years ago, we moved our starting hourly wage to $15 everywhere in the U.S. Effective next week, the starting wage will go to $16,” stated Costco CEO Craig Jelinek throughout a Senate price range committee listening to on Thursday.

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

This transfer comes as Congress debates the $15 an hour federal minimum wage enhance as a part of President Joe Biden’s $1.9 trillion Covid-19 aid invoice.

Target and Amazon each pay hourly workers a minimum of $15 an hour. Walmart’s minimum wage begins at $11 an hour, however it not too long ago introduced raises for 425,000 workers that may enhance the retailer’s common pay to above $15 an hour. Walmart is the nation’s largest employer.

Beginning in March of final 12 months, the chain instituted a $2 an hour premium to its workers to assist cushion the monetary pressure that the pandemic introduced to many individuals.

“As we approach the one-year mark of this extra pay, we will limit the temporary premium, but convert some of the premium to a permanent increase by raising each step on hourly wage scales,” stated Jelinek.

Costco workers within the U.S. have been with the corporate for over 9 years on common, with greater than 60% of its workers averaging 5 years or extra of service.

Costco has 803 places worldwide, together with 558 in 45 U.S. states, Washington and Puerto Rico.

The firm wasn’t instantly accessible to remark additional on its choice.

Correction: The listening to happened on Thursday. An earlier model of this story misstated the date.

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