Costco is one of the most prominent membership-only big-box retail stores in the United States. Across the country, the average hourly wage is just over $13.00. The company is recognized as one of the most reputable companies in the world, which may make it a great place to work.
But compensation is one of the most important factors in deciding on a job, so you may be wondering how much does Costco pay? This article covers everything you need to know about compensation at Costco.
How Much Does Costco Pay in 2024?
According to the CEO of Costco, the average pay for hourly workers is $24.00 per hour, which comes out to $49,920 per year. The minimum wage at Costco was bumped to $16.00 per hour in 2024, meaning entry-level employees can make up to $31,200 per year.
Wages typically depend on local cost of living, employee years of service, role within a store, and performance. Yet with a $16.00 minimum wage company-wide, Costco offers a competitive salary when compared to any comparable position in retail.
Managers at Costco can make over $80,000 per year and are eligible for bonuses and stock options. A spokesperson for Costco even claims that top earners can make $180,000 per year.
The next section covers how compensation varies from position to position, so read on if you are looking for the right role for you.
How Does Costco Pay by Position?
From cashiers to bakers, a Costco store’s success is dependent on a variety of key roles. Each role requires a unique set of skills and experience, thus pay can vary depending on your job title. Below we break down the compensation for some of the most common Costco jobs.
Average Annual Income (assuming 40 hours per week) Costco Employees
| Job Title | Type of Wages | Average Yearly Wages | Average Yearly Bonuses |
| Cashier | Hourly | $33,150 | N/A |
| Stocker | Hourly | $31,200 | N/A |
| Cake Decorator | Hourly | $53,051 | N/A |
| Assistant Manager | Salary | $70,115 | $5,000 |
| Store Manager | Salary | $113,000 | $23,000 |
This data shows that compensation can vary drastically from position to position. Additionally, compared with comparable positions at a company like Walmart, Costco has better pay – especially for entry-level positions, like Cashier.
As expected, a Manager receives the highest overall compensation with annual salaries that exceed $70,000 per year. What’s more, managers qualify for large bonuses that range from $5,000 – $25,000 per year.
Aside from these positions, you may be wondering what is the highest-paid position at Costco? The next section will dig into some of Costco’s highest earners.
What is Costco’s Highest Paying Position?
While Store Managers are high earners, many of Costco’s most well-compensated individuals work within their corporate office. From engineers to executives, many other Costco employees take home large six-figure salaries, with some executives making more than $300,000 per year.
At Costco, like other retailers, executives receive the largest salaries. In 2018, Jim Sinegal, the CEO of Costco, reported a base salary of $800,000 per year!
The average Vice President level executive receives a base salary of around $300,000 per year according to Glassdoor.com. Still, the most lucrative part of their contract tends to be bonuses and stock awards.
For example, in addition to the CEO’s $800,000 salary, Mr. Sinegal also earned a bonus of $97,000 and stock options that exceeded six million dollars.
Outside of the Executive offices, many managers and engineers receive high salaries that range from $130,000-$200,000 per year.
One factor that is key to compensation is location. Read the next section for more information on how pay can vary by location.
How Does Costco Pay Vary by Location?
Often compensation can vary from location to location, usually due to differences in cost of living in that area. Below we compare the average pay of an entry-level Costco employee (cashier) across states and that state’s minimum wage.
Average Hourly Wages by State
| State | Costco Hourly Wage | Minimum Wage by State |
| Colorado | $17.00 | $12.00 |
| California | $18.00 | $15.00 |
| Alabama | $16.00 | $7.25 |
| Vermont | $17.00 | $11.75 |
| Idaho | $16.00 | $7.25 |
In the case of Costco, wages seem relatively standard across the states sampled above. If you are looking for an entry-level position, in an area with a low minimum wage Costco looks to be a really great option.
How Often Do Costco Employees Get Paid?
Costco pays its employees on a biweekly schedule. This practice is standard across the United States, as biweekly payroll cuts down on the cost of payroll and reduces errors.
Every 6 months, Costco employees are also eligible for a performance bonus. The next section goes into even more detail around “Bonus Time” at Costco, so be sure to keep reading.
Do Costco Employees Get a Bonus?
Costco employees are eligible for a bonus twice a year. The bonus for Costco employees adds up to about $4,000 per year.
According to a user on Reddit, bonuses start at $2,500 every six months, and more senior employees can receive up to $3,500. Meanwhile, managers and executives are eligible for bonuses that well exceed $10,000 per year.
Costco’s generous bonus package ensures that all employees receive compensation that is not only commensurate with their performance but also their loyalty and company success.
What Benefits Do Costco Employees Get?
In addition to competitive pay, Costco employees are also eligible for a comprehensive benefits package. Below highlights some key aspects of this package.
- Affordable Health Care Coverage
- Company Sponsored Retirement Plan
- Twice-Yearly Bonuses
- Guaranteed Minimum Scheduled hours
- Competitive Paid Time Off
- 4 Free Annual Club Memberships
All Costco employees, including part-timers, are eligible for the above benefits. However, seniority does matter with some benefits only available to employees with 6 months of service.
How Much Does Costco Pay Employees?
Costco offers a competitive compensation package with an average hourly rate of $24.00. This relatively high wage paired with impactful benefits makes Costco a great place to work, especially for entry-level employees.
Costco has a company-wide minimum wage that exceeds most state-level minimum wages in the US. Additionally, as of 2024, all employees are eligible for bonuses.
Ultimately, Costco appears to be one of the highest-paying retailers in the industry.
