Costco raised its minimum starting wages for new employees to $17 an hour this week, TODAY reports.
The raise went into effect on Monday, Oct. 25, less than a year after the company increased its hourly wage to $16 an hour.
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“Effective Oct. 25, 2021, we will adjust the starting hourly wages for new employees in the U.S. to $17.00/hour for service assistants, $18.00/hour for service clerks and $18.50/hour for meat cutters,” Craig Jelinek, president and CEO of Costco, wrote in a memo to TODAY. “Current U.S. employees making less than these rates will be moved up to these rates on their scales, and their goal hours will be reset. Please contact your GM or payroll clerk with any questions.”
According to TODAY, Costco said the decision was made in an effort to keep their pay competitive in today’s job market.
“These increases are part of Costco’s continuing efforts to ensure our hourly wages remain extremely competitive in the retail industry,” Jelinek told TODAY. “We remain proud to be able to pay employees well and provide excellent benefits. As in the past, we will review hourly wage scales in connection with the upcoming employee agreement.”