Sam’s Club to raise employee salaries: How much will they earn and when will it start?

In the coming months, employees at Sam’s Club, Walmart’s membership-based chain, will see an increase in their salaries. The pay hike is intended to attract new workers and retain those already with the company.

According to official information from the company, the minimum hourly wage for a Sam’s Club worker will increase from $15 to $16 dollars starting in November. Both these figures are equivalent to more than double the federal minimum wage, which stands at $7.25 an hour.

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The retailer will also increase the salaries of all other employees by 3% to 6%, depending on their seniority. This will allow them to reach the maximum pay rate for their given position more quickly. This new plan will take effect on November 2.

“In an increasingly competitive retail landscape, attracting, hiring and, most importantly, retaining quality talent has become a true competitive advantage,” the company said when it announced the wage increases.

Currently, there are 575 Sam’s Club stores in the United States, spread across 45 states and 489 cities. The increase in wages will benefit nearly 100,000 of the company’s employees.

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Tough competition in minimum wage rates

The salary increase implemented by Sam’s Club is part of a strategy to strengthen its competitiveness in the labor market, particularly against its main competitor, Costco. The Washington-state based membership club offers workers a minimum wage of $19.50 per hour.

With this salary adjustment, Sam’s Club is not only looking to retain its talent, but also to attract new employees in an increasingly competitive market.

In recent years, retail employee salaries have increased by about 16%, from $21.18 per hour to $24.48 on average, according to Reuters.