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Costco increases minimum wage to $16 an hour

The company previously boosted its base pay in 2018 and 2019

Business

FILE - In this March 20, 2020 file photo, shoppers line up to enter a Costco store in Tacoma, Wash. Americans are beginning to see the first economic impact payments hit their bank accounts this week. The IRS tweeted Saturday, April 11, 2020, that it had begun depositing funds into taxpayers’ bank accounts and would be working to get them out as fast as it can. (AP Photo/Ted S. Warren, Fle)

Wholesale retailer Costco is increasing its minimum wage to $16 an hour beginning next week.

Costco CEO Craig Jelinek revealed the news on Thursday at a U.S. Senate Budget Committee hearing on worker wages, according to MSN.

“We try to take care of our employees because they play a significant role in our success,” Jelinek said.

The company’s current baseline pay for employees is $15 an hour. Its latest increase will boost its minimum pay for workers above Amazon and Target, MSN reported.

House Democrats are poised to pass their $1.9 trillion coronavirus relief bill on Friday, which will include a provision to increase the federal minimum wage to $15 an hour by 2025.

It’s unclear if the provision will survive the final bill, a concession made by President Joe Biden to a group of mayors and governors last week, Politico reported.

“I really want this in there, but it just doesn’t look like we can do it because of reconciliation,” Biden said, according to Politico. “I’m not going to give up. But right now, we have to prepare for this not making it.”

Costco increased its minimum wage twice in the last three years. In 2018, it set its minimum wage to $14 an hour; and in 2019, it was increased to $15 an hour, according to The Seattle Times.

The federal minimum wage has been $7.25 since 2009.

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