Walmart Pay Raise 2025: Everything You Need to Know (Hourly Rates, Pay Chart, and More)

Costco pay raise 2026 explained — $1/hour increase in March 2026, updated pay scale by role, Teamsters contract highlights, bonuses, and how Costco compares to Walmart and Target.

📋 Table of Contents

1. Costco Pay Raise 2026 — Quick Overview
2. How Much Is the 2026 Pay Raise?
3. Full Costco Pay Scale by Role (2026)
4. Raise Timeline: 2025 → 2026 → 2027
5. Teamsters Contract: Key Highlights
6. Benefits Package in 2026
7. How Costco's Step Raise System Works
8. Costco vs. Walmart vs. Target vs. Sam's Club
9. What the Raise Means for Costco Workers
10. Frequently Asked Questions (FAQ)
11. Conclusion

Costco Pay Raise 2026 — Quick Overview

March 2026 is a landmark month for Costco employees across the United States and Canada. As part of the three-year labor agreement negotiated with the Teamsters Union in early 2025, Costco implemented a $1 per hour pay increase for top-of-scale workers — one of the most significant annual wage steps in the retail industry today.

This isn't a surprise announcement — it was locked in writing when Costco and the Teamsters reached their landmark deal in March 2025, avoiding a potentially massive strike. What it means is that hundreds of thousands of Costco workers are waking up in 2026 to noticeably fatter paychecks, while the company continues to hold its position as the highest-paying major retailer in America.

$31+

Average Hourly Wage (US & Canada)

$20

Starting / Minimum Wage

$1/hr

March 2026 Raise (Top of Scale)

93%

Employee Retention Rate (1+ Year)

ℹ️

Why this matters: Costco's average wage of over $31/hour dwarfs the retail industry average. For comparison, Walmart's average hourly pay is approximately $14–$18. Costco isn't just raising wages — it's redefining what a retail job can pay.

How Much Is the 2026 Pay Raise?

The March 2026 wage increase is the second of three scheduled $1/hour step increases built into the Costco-Teamsters contract signed in 2025. Here is the precise breakdown for different employee categories:

Top-of-Scale Employees (e.g., Senior Clerks, Experienced Assistants)

Top-of-scale workers — those who have been with Costco long enough to reach the maximum wage for their classification — received a $1.00/hour raise in March 2026. Their pay moved from approximately $30.20 to $31.20 per hour. By March 2027 (the final year of the contract), these employees will be earning approximately $32.20 per hour.

Entry-Level / Bottom-of-Scale Employees

Employees at the bottom of the pay scale — including new clerks and assistants — received a 50-cent per hour increase in the first year (2025), bringing their starting pay to $21/hour for clerks and $20/hour for the absolute entry point. Further step increases follow in 2026 and 2027 as they accumulate hours and progress through the wage ladder.

✅

Key numbers for 2026: Top-of-scale workers now earn $31.20/hour. With time-and-a-half on Sundays and biannual bonuses (up to $10,000/year), the effective annual compensation for a full-time, top-of-scale Costco employee can easily exceed $75,000–$80,000 per year.

Full Costco Pay Scale by Role (2026)

Costco's pay is structured by role and tenure. Below is an updated wage table reflecting the 2026 pay scale after the March increase:

Position / Role	Starting Pay	Top-of-Scale (2026)	Est. Annual (Full-Time)
Entry-Level Clerk / Cashier New hire	$20.00/hr	$21.00/hr	$43,680+
Food Court / Service Clerk	$20.00/hr	$31.20/hr	$64,896+
Warehouse Clerk / Assistant	$20.00/hr	$31.20/hr	$64,896+
Stocker / Freight Team	$21.00/hr	~$31.00/hr	$64,480+
Tire Technician	$21.00/hr	~$31.20/hr	$64,896+
Optical / Pharmacy Technician	$22.00/hr	~$33.00/hr	$68,640+
Shift / Department Manager	$30.00/hr	$47.60/hr	$99,008+
Warehouse (General) Manager Highest	$55.00/hr	Up to $55+/hr	$114,000+

Note: Annual salary estimates are based on 2,080 hours/year (full-time). Premium location surcharges of $1–$2/hour may apply. Bonuses and Sunday premiums are not included in the base figures above.

⚠️

Premium locations: Employees at high-volume Costco warehouses (such as those in major metropolitan areas) can earn an additional $1.00–$2.00 per hour on top of the standard scale, pushing top-of-scale pay toward $32–$33 per hour in 2026.

Raise Timeline: 2025 → 2026 → 2027

The three-year Costco-Teamsters agreement lays out a clear roadmap of wage increases. Here is the complete timeline:

March 2025

Year 1 — Contract Takes Effect

Costco implements the first $1/hour raise for top-of-scale employees immediately upon the new agreement taking effect. Starting wages rise from $19.50 to $20.00/hour. Bottom-of-scale clerks get +$0.50 to reach $21/hour. Average wage surpasses $31/hour across the US and Canada. First-year employees gain access to paid vacation for the first time.

March 2026 ← We Are Here

Year 2 — Second $1/Hour Increase

Top-of-scale workers receive their second $1/hour raise, moving from $30.20 to $31.20/hour. Step increases continue across all wage grades. Bonuses, vacation, and Sunday premium benefits remain fully in effect.

March 2027

Year 3 — Final $1/Hour Increase

The final year of the contract brings a third $1/hour bump, pushing top-of-scale pay to approximately $32.20/hour. By this point, Costco's compensation will be nearly double the federal minimum wage, cementing its position as the gold standard of retail employment.

💡

Thinking of Asking for a Raise at Work?

Whether you're at Costco or anywhere else, knowing exactly what to say can make or break your raise request. Read our detailed guide on the right words and strategies to use.

→ What to Say When Asking for a Raise in 2026 (Complete Script Guide)

Teamsters Contract: Key Highlights

The 2025–2027 Costco-Teamsters agreement was hard-fought. The Teamsters Union, which represents approximately 18,000 Costco workers in six states — California, Maryland, New Jersey, New York, Virginia, and Washington — authorized a strike vote before a deal was reached. Here's what the contract locked in:

• Three scheduled $1/hour increases at the top of scale: March 2025, March 2026, and March 2027
• Bottom-of-scale increases of $0.50/hour for clerks and assistants
• Paid vacation in Year 1 — first-year employees can now accrue paid vacation from day one, ending the prior waiting period
• Six weeks of vacation for employees with 30+ years of service
• Enhanced benefits including improved paid family leave and stronger seniority rights
• Protections against workplace surveillance — a key Teamsters demand to prevent monitoring overreach
• Sick time improvements negotiated as part of the wider package

CEO Ron Vachris publicly stated the deal "reflects our continued commitment to provide industry-leading pay and benefits for our employees." The contract covers all unionized locations, while non-union Costco employees received equivalent wage increases under the standard Costco pay structure.

🏛️

Did you know? Only about 5% of Costco's total workforce is represented by unions. Despite this, the Teamsters contract sets the tone for the entire company's compensation structure, benefiting all hourly Costco workers — union and non-union alike.

Benefits Package in 2026

A Costco paycheck is only part of the story. The total compensation package — including benefits — is what truly separates Costco from virtually every other retailer in America. Here is a full breakdown of what Costco employees receive in 2026:

💰 Pay & Bonus Benefits

• Biannual cash bonuses: $2,500 to $10,000 per year for both full-time and part-time employees, depending on tenure and role
• Sunday premium pay: 1.5x regular hourly rate for all Sunday hours
• Periodic cost-of-living raises: Costco has historically issued additional $0.50–$1.00/hour inflation adjustments outside of the standard step schedule
• Step increases: $1.00/hour raise every 1,040 hours worked (approximately every 6 months for full-timers)

🏥 Health & Insurance

• Comprehensive medical, dental, and vision coverage — available to both full-time and many part-time employees
• Full-time employees pay a low premium; for example, some employees report paying approximately $100 per paycheck for full family coverage with a $1,500 deductible
• Employee Assistance Program (EAP) for mental health and counseling support

🏖️ Time Off & Vacation

• Year 1 vacation: New employees now earn paid vacation in their first year (a change introduced in the 2025 contract)
• Veteran vacation: 30-year employees receive up to six weeks of paid vacation annually
• Paid sick time and personal days, improving with seniority

💼 Retirement & Other Perks

• 401(k) with employer matching — Costco contributes to employee retirement savings
• Three free Executive memberships per employee (a $130+ annual value each)
• Discounts and access to Costco's full product range
• Career advancement pathway from part-time entry to salaried management

How Costco's Step Raise System Works

Unlike many retailers that offer annual performance reviews with unpredictable raises, Costco operates a transparent, hours-based step raise system. This is one of the most important things to understand if you're considering a job at Costco or are a current employee wondering when your next raise arrives.

The 1,040-Hour Rule

Every time a Costco employee works 1,040 hours, they receive a $1.00 per hour raise. Here is how that plays out in practice:

• Full-time employees (40 hours/week = 2,080 hours/year) hit 1,040 hours every 6 months — meaning two raises per year
• Part-time employees typically reach 1,040 hours in about 9 months
• Part-time employees are usually eligible for conversion to full-time status after their first or second year

Path to Top-of-Scale Pay

Starting from the bottom of the pay scale, a full-time Costco employee can reach top-of-scale pay in approximately 5 years. Once at the top of scale, the employee earns the standard company-wide rate for their role, plus any across-the-board increases like those in the 2025–2027 contract.

🚀

The Math: A new Costco clerk starting at $20/hour in 2026 can realistically be earning over $31/hour within 5 years through step raises alone — before any company-wide contract increases, bonuses, or Sunday premiums are factored in.

🛒

How Does Costco Compare to Walmart's 2026 Pay Raise?

Walmart also announced pay changes for 2026. See how the two retail giants stack up — from minimum wage to management salaries — in our dedicated Walmart guide.

→ Walmart Pay Raise 2026: Full Breakdown of Wages & Changes

Costco vs. Walmart vs. Target vs. Sam's Club (2026)

One of the most frequent questions about Costco's wages is: how does it actually compare to competitors? The answer, in short, is that Costco isn't just ahead — it's in a different league entirely for a retail employer of its scale.

Retailer	Starting Wage (2026)	Average Hourly	Paid Vacation Yr 1	Sunday Premium
Costco Best	$20.00/hr	$31+/hr	✅ Yes	✅ 1.5x
Target	$15.00/hr	$15–$24/hr	After 1 year	❌ No
Walmart	$14.00/hr	$14–$18/hr	After 1 year	❌ No
Sam's Club	$15.00/hr	$14–$18/hr	Limited	❌ No
Kroger	$15.00/hr	~$25/hr avg*	Varies	Varies

*Kroger's average of ~$25/hour includes benefits value. Direct cash wage is lower.

The data tells a clear story: Costco's average hourly wage of $31+ in 2026 is more than double Walmart's average and nearly twice Target's. When you factor in biannual bonuses, Sunday premiums, and comprehensive health insurance, the gap becomes even wider.

2×

Costco pays more than double the average Walmart hourly wage

$10K

Maximum annual bonus available to long-tenured Costco employees

6 wks

Paid vacation for 30-year Costco veterans under the new contract

93%

Retention rate for employees with 1+ year — extraordinary for retail

What the Raise Means for Costco Workers in 2026

Numbers on a page are one thing — what does the 2026 pay raise actually mean for real Costco employees? Here's the human side of the story.

For Top-of-Scale Full-Time Workers

A full-time senior clerk now earning $31.20/hour works 2,080 hours annually, giving a base salary of approximately $64,896 per year. Add in biannual bonuses (say $5,000 average), Sunday premium earnings (assuming even 4 Sundays/month), and that figure can climb to $72,000–$80,000 per year — without a college degree and with industry-leading health insurance on top. That is genuinely life-changing compensation for a retail worker.

For New Employees

Starting at $20/hour, a new full-time Costco employee earns $41,600/year before bonuses and benefits. This is nearly triple the federal minimum wage of $7.25/hour, and more than most U.S. states' own minimum wages. Critically, with the step raise system, this figure climbs quickly — within the first two years of full-time work, employees can be earning $23–$24/hour.

The Broader Industry Impact

When Costco raises wages, the retail industry takes notice. With revenues of $254 billion and a net income exceeding $7 billion in its most recent fiscal year, Costco has proven that paying workers well is not incompatible with exceptional profitability. Competitors like Walmart and Target are watching — and Costco's continued leadership may eventually pressure the broader retail industry to follow.

📊

The CFO's perspective: Costco CFO Gary Millerchip acknowledged that wage increases create a "mid-single digit headwind" to selling, general and administrative expenses (SG&A). However, Costco's SG&A as a percentage of sales remains among the lowest in retail, making the investment sustainable. The company plans to offset costs through improved labor productivity and operational efficiency.

Frequently Asked Questions (FAQ)

In March 2026, Costco implemented a $1.00 per hour raise for top-of-scale employees as the second step in its three-year Teamsters labor agreement. This brings top-of-scale pay from $30.20 to $31.20 per hour. A final $1.00 increase is scheduled for March 2027, reaching $32.20/hour. Entry-level and bottom-of-scale employees continue progressing through the step raise system at their own pace.

Costco's minimum starting wage in 2026 is $20.00 per hour for entry-level positions in the United States and Canada. Following the March 2026 step increase, bottom-of-scale clerks and assistants earn $21.00 per hour. This is nearly three times the federal minimum wage of $7.25/hour and significantly above most state minimum wages.

The average Costco hourly wage in 2026 is approximately $31–$32 per hour across the US and Canada, inclusive of bonuses. This average was confirmed by CEO Ron Vachris in investor communications. Roles like clerks and assistants sit close to the average at $31.20/hour top-of-scale, while department and shift managers can earn up to $47.60/hour, driving the company-wide average higher.

Yes. Costco continues to pay 1.5 times the regular hourly rate for all hours worked on Sundays. This Sunday premium is one of Costco's standout pay features that most large retailers no longer offer. For a top-of-scale worker earning $31.20/hour, this means $46.80/hour on Sundays — making weekend shifts a financially attractive option.

Costco significantly outpaces retail competitors in 2026. Costco's average hourly pay is $31+, while Walmart averages $14–$18/hour, Target pays $15–$24/hour, and Sam's Club (Walmart's warehouse competitor) pays $14–$18/hour. Costco also leads on bonuses, vacation time, Sunday premium pay, and health insurance quality. You can read more about Walmart's wage structure in our Walmart Pay Raise 2026 guide.

Costco employees receive a $1.00 per hour raise for every 1,040 hours worked. For full-time employees working 40 hours/week (2,080 hours/year), this means two raises per year. Part-time employees typically hit the 1,040-hour mark every 9 months. After approximately 5 years of full-time employment, workers reach top-of-scale pay for their role.

Costco pays biannual bonuses to both full-time and part-time employees. Bonus amounts range from $2,500 to $10,000 per year, depending on tenure and role. Additionally, Costco may issue periodic cost-of-living raises of $0.50–$1.00 per hour at the company's discretion, outside of the standard step increase and contract schedule. Long-tenured employees consistently report receiving both the structured and discretionary increases.

The 2025–2027 Teamsters agreement introduced paid vacation access from Year 1 of employment — previously, new employees had to wait before accruing vacation. Employees with 30 or more years of service now receive up to six weeks of paid vacation annually, up from the previous five-week maximum. Paid sick time and personal days also improve with seniority under the contract.

Costco shift managers and department managers can earn up to $47.60 per hour in 2026, translating to a salary of approximately $99,000–$114,000 per year, depending on location, tenure, and bonuses. Warehouse (general) managers can earn salaries above $114,000 annually. These management salaries are exceptionally competitive — even compared to non-retail employers — and reflect Costco's commitment to investing across all levels of the organization.

Costco unionized workers are covered by a three-year labor agreement struck between Costco and the Teamsters Union in March 2025. It covers approximately 18,000 unionized Costco employees across six U.S. states: California, Maryland, New Jersey, New York, Virginia, and Washington. The contract runs through March 2027 and includes three consecutive annual $1/hour raises at the top of scale, improved vacation benefits, sick time, seniority protections, and anti-surveillance provisions.

By most objective measures, yes — Costco is widely regarded as one of the best large employers in the retail industry. Its 93% employee retention rate for workers with one or more years of service is extraordinary for retail, where annual turnover often exceeds 60–70%. Employees consistently cite the above-market wages, bonuses, Sunday premium pay, excellent health insurance, and retirement benefits as key reasons they stay. Costco's management culture and career ladder — from part-time clerk to six-figure management — also receive strong reviews.

Conclusion: Costco's 2026 Raise Sets the Bar for Retail Wages

The Costco pay raise in 2026 is not a minor headline adjustment — it is the continuation of a deliberate, multi-year strategy to be the undisputed wage leader in American retail. The $1/hour raise for top-of-scale employees in March 2026, locked in by the Teamsters contract, pushes the average Costco wage past $31/hour and puts the company's compensation in a class of its own.

For current Costco employees, 2026 means more money in the bank, expanded vacation benefits, and the security of knowing the next raise is already in the contract. For job seekers, Costco remains one of the most financially rewarding employers to join without a college degree. And for the retail industry as a whole, Costco's model continues to challenge the assumption that low wages are necessary for profitability.

With a $32.20/hour top-of-scale wage coming in March 2027, Costco shows no signs of reversing course. If you're considering whether to apply, ask for a raise, or simply understand what a fair retail wage looks like — Costco's 2026 pay structure is the benchmark to measure against.

Planning to Ask for Your Own Raise in 2026?

Use our expert-crafted guide to learn exactly what to say, how to time your request, and how to negotiate confidently — whether you're at Costco or any other employer.

Read: What to Say When Asking for a Raise →

Go to Link