Costco raises minimum wage to $17 an hour

This week Costco raised its starting wage for hourly store workers in the US for the second time this year as more businesses hike pay and try to retain workers amid the labor and staffing shortage. Costco informed employees last week that it would increase the minimum wage from $16 to $17 an hour starting on Monday. The company has around 180,000 US employees and 90% of them work on an hourly basis. Costco has the lowest turnover rates in the industry and the new starting wage puts the chain $2 above Amazon, Target and other top retailers; minimum wages and $5 an hour above Walmart's minimum wage. 

The new pay hike at Costco comes while many retailers, restaurants and other service sector employers raise the pay for their employees, offer signing bonuses and provide benefits to retain employees. Costco raised its minimum to $14 in 2018 and $15 in 2019. In February, the company raised its wages to $16 an hour. Craig Jelinek, Costco CEO said in a memo to the employees, " These increases are part of Costco's continuing efforts to ensure our hourly wages remain extremely competitive in the retail industry." 

Source: CNN