Good news for Costco employees: This is their new increased salary for 2025

Good news for Costco’s US store workers, whose pay slips will be seeing an increase in 2025 amid contract talks with unionized employees.

The retailer announced a memo sent to employees this week that all employees at its non-union stores will get a salary increase - the news comes just hours before employees at 50 unionized locations are set to go on strike, Bloomberg reports.

What is the hourly pay rate at Costco?

The company will increase hourly pay for its top of the scale employees over the next three years, with the rate rising by $1 to $30.20 in the first year and an extra $1 each in the subsequent two years. The bottom of the scale employees will also get an increase of 50 cents to $20.

“With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry,” the company said in the memo signed by CEO Ron Vachris.

The pay hike comes after Costco Teamsters members voted overwhelmingly in favor of a strike if a new three-year contract agreement wasn’t reached by midnight on Friday 21 January. Costco Teamsters, who represent 18,000 workers nationwide, accused the company of failing to “bargain constructively” and propose a contract that “reflects the company’s record-breaking profits.”

They also accused Costco of refusing to share its record $7.4 billion in annual profits in 2024 with workers, and staffers have complained about inadequate pay, benefits, seniority rights and paid leave policies.

“The Teamsters are committed to securing a fair and reasonable agreement but are prepared to take action if the wholesale giant fails to deliver,” the union said.

Costco has 219,000 employees and 617 stores in the US. “We have always treated our employees fairly and well throughout the history of our company,” the company said in a statement.

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