Feb 25, 2021 - Economy

Costco will raise minimum wage to $16 per hour

Fadel Allassan

Costco will raise its minimum wage to $16 per hour, CEO Craig Jelinek told lawmakers Thursday at a Senate Budget Committee hearing, per CNN.

The big picture: The move places Costco's base pay above competitors like Target and Amazon, CNN reports. Jelinek said more than half of the company's in-store workers are paid more than $25 per hour.

Walmart last week said it is raising wages for approximately 425,000 employees to somewhere between $13–$19 an hour following a strong Q4.

Why it matters: The increase comes as Congress debates whether to raise the minimum wage to $15 hourly. A measure that would do so could be included in Joe Biden's $1.9 trillion economic relief bill, depending on the judgment of the Senate parliamentarian.

President Biden and leading Democratic lawmakers support the increase.

What they're saying: "We're certainly not perfect, but we try to take care of our employees, because they play such a significant role in our success," Jelinek told the committee, according to Business Insider.

Add Axios on Google

Costco will raise minimum wage to $16 per hour

What to read next