Costco announced a phased increase to its hourly wage scales in the United States and Canada in March 2025. The company raised its entry-level minimum by $0.50 to $20 an hour on March 3, 2025, and said top-of-scale rates would rise by $1 in March 2025, March 2026 and March 2027. Those scheduled top-scale increases are not a promise of the same raise for every hourly employee.
What Costco announced in March 2025
On its March 6, 2025, fiscal 2025 second-quarter earnings call, Costco President and CEO Ron Vachris said the updated employee agreement had taken effect that week in the United States and Canada: “Our updated employee agreement took effect this week in the U.S. and Canada.” Costco described two related changes: a $0.50 increase at the bottom of the wage scale, effective March 3, 2025, and a phased schedule of $1 increases at the top of the scale. Costco’s Q2 fiscal 2025 earnings call
The entry-level minimum
Costco said the bottom of its wage scale increased by $0.50 on March 3, 2025, bringing the minimum to $20 per hour. Its 2025 annual report later described entry-level starting wages in the U.S. and Canada as at least $20 per hour after that increase. This is a starting-wage figure, not a statement that every employee earns exactly $20. Costco Annual Report 2025
The top-of-scale schedule
The company announced a $1-per-hour increase at the top of the scale in March 2025, followed by additional $1 top-of-scale increases scheduled for March 2026 and March 2027. Costco’s 2025 annual report confirms that top-of-scale rates rose by $1 per hour in 2025. The 2026 and 2027 amounts were future scheduled increases in the March 2025 announcement; the sources cited here do not verify whether they were later changed or implemented as planned. Costco’s Q2 fiscal 2025 earnings call Costco Annual Report 2025
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Does the increase apply to every Costco employee?
No. Costco’s announcement distinguished the entry-level minimum from increases scheduled for the top of wage scales; it did not describe three universal $1 raises for every hourly worker. Individual pay can differ with role, tenure, location and applicable agreement. Costco Careers says hourly wage increases are tied to accumulated hours and that tenured hourly employees receive additional compensation twice a year based on years of service, but it does not publish a dated pay table in that overview. Costco Careers: Why Costco
Union coverage is another reason not to treat the company-wide schedule as a complete description of every employee’s contract. Costco reported that about 5% of its worldwide workforce was represented by unions in 2025. Separately, the Associated Press reported in February 2025 that the Teamsters represented 18,000 Costco workers in six states and that the relevant labor agreement applied to fewer than 10% of the company’s stores. Those figures describe different scopes and should not be read as a count of all employees affected by the wage announcement. Costco Annual Report 2025 Associated Press, February 1, 2025
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What Costco’s reported average hourly rate means
Costco’s 2025 annual report put the average hourly rate for U.S. hourly employees at approximately $32 at year-end 2025. That is an average for a defined employee group and period—not a starting wage, a guaranteed rate, or the rate for every role or geography. It is also a different measure from both the $20 entry-level floor and the top of a wage scale. Costco Annual Report 2025
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to check what a current employee or applicant will earn
The March 2025 announcement and 2025 annual report establish the figures described above, but they do not provide a complete current pay chart broken down by job, location, tenure and agreement. To assess a specific position, look for the applicable posting or agreement and confirm the starting rate and progression rules directly with Costco.
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- Compare the entry-level floor with the rate for the particular role and location.
- Ask how accumulated hours affect progression through wage steps and how long advancement typically takes under the applicable terms.
- Check whether the position is covered by a union agreement or another employee agreement.
- Compare benefits and paid leave separately from hourly pay; an average wage does not capture total compensation.
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