Walk into any Costco on a Saturday afternoon and you’ll see the same thing: absolute chaos. Carts overflowing with 40-packs of toilet paper, samples of chicken salad being handed out like gold, and workers who, despite the madness, usually seem weirdly happy. It makes you wonder. Honestly, if you've ever stood in those long checkout lines, you've probably asked yourself: how much do people at Costco make to deal with all of this?
The answer isn't just a single number. It’s a ladder. And right now, in 2026, that ladder is taller than it’s ever been.
The $20 Start and the March Bump
Let’s get the baseline out of the way. As of early 2026, the floor for a Costco employee is $20 an hour. That’s the starting wage for entry-level "assistants"—the folks you see hauling carts from the parking lot or stocking the massive shelves in the freezer section.
But here’s the kicker. If you're looking at the pay scale right now, you have to look at the calendar. Per the three-year employee agreement that kicked off back in 2025, another big shift is hitting in March 2026.
For those at the "top of the scale"—the veterans who have put in their hours—hourly rates are jumping again. We're talking about service clerks hitting nearly $33.00 an hour. Just for context, a full-time clerk at that rate is pulling in over $68,000 a year before a single hour of overtime. In the world of retail, that's not just "good pay." It's industry-leading.
Not All Roles are Created Equal
You can't just walk in and expect the $33/hour rate. Costco is famous for its "steps." Basically, you earn raises based on the total number of hours you’ve worked. It’s transparent, but it’s a grind.
- Service Assistants: These are your entry-level roles. They start at $20.00.
- Service Clerks: Think cashiers or people working the pharmacy counter. They start slightly higher—often around $21.00—and have a higher ceiling.
- Meat Cutters & Licensed Techs: This is where the money gets serious. If you have a specialized skill, like cutting meat or working as a pharmacy tech, you’re looking at premiums that can push you well past the standard clerk pay.
Why Everyone Stays (The Golden Handcuffs)
People don't just stay at Costco for the hourly wage. They stay for the "extra checks." If you talk to a tenured employee, they’ll eventually mention their "bonus."
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Once an employee hits the top of the pay scale—which usually takes a few years of full-time work—they start receiving semi-annual longevity bonuses. These aren't small. We are talking about checks ranging from $2,500 to $5,000 twice a year, depending on years of service. For a long-term cashier, these bonuses alone can add $10,000 to their annual income.
Then there’s Sunday pay. It’s legendary. Costco pays time-and-a-half on Sundays. If you’re a topped-out clerk making $32.90 an hour, your Sunday rate is nearly **$50.00 an hour**.
Management and the Six-Figure Club
While the hourly folks are doing well, the warehouse managers are in a different league. It is a known fact in the retail industry that Costco prefers to promote from within. They take care of their own.
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A Warehouse Manager (the person running the whole building) can easily earn between $150,000 and $300,000 a year when you factor in stock options and performance bonuses. Even Assistant Managers often sit comfortably in the $75,000 to $95,000 range.
But it’s not just about the money. The benefits package is arguably the best in the business.
- Health insurance with incredibly low premiums (employees often pay less than 15% of the cost).
- Dental and vision coverage that actually covers things.
- A 401(k) match that is actually generous.
- Paid bonding leave and vacation time that scales up to six weeks for long-term veterans.
The Comparison: Costco vs. The World
How much do people at Costco make compared to Sam's Club or Walmart? It's not even close.
While Walmart and Sam's Club have made strides to raise their minimums to $15 or $16 in many areas, Costco’s average wage in 2026 has climbed past $31 an hour. This is a deliberate business strategy.
Former CEO Jim Sinegal and current leadership believe that higher wages lead to lower turnover. It’s expensive to train a new employee. If you pay people well, they don't leave. Costco’s turnover rate for employees who have been there over a year is less than 6%. Compare that to the rest of the retail industry, where 50% or 60% turnover is common, and you see why the model works.
The Reality Check: Is It Worth It?
It sounds like a dream, but don't be fooled. Working at Costco is physically demanding. You are on your feet for eight hours. You are lifting heavy boxes. You are dealing with a membership base that can be, frankly, a bit entitled.
The company is also famously "lean." They don't overstaff. If you’re on the floor, you’re working. There’s no standing around. And because the pay is so good, the competition for jobs is fierce. In some cities, a single job opening at a new Costco warehouse can attract thousands of applications.
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Actionable Insights for Aspiring Employees
If you’re looking to get a piece of the Costco pie, keep these things in mind:
- Apply for Seasonal Work: Most permanent employees start as seasonal hires during the holidays. It’s a 90-day "audition."
- Open Availability is Key: If you can’t work Sundays, you probably won’t get hired. Sundays are the busiest days and the most expensive for the company, so they need all hands on deck.
- The "Hours" Grind: Understand that your raises are tied to your hours. It’s a marathon, not a sprint. You won't hit that $33/hour rate in year one.
- Check the 2026 Health Updates: Be aware that while pay is up, health insurance costs are seeing a slight uptick across the board in 2026 due to broader market shifts. Review the plan options carefully during enrollment.
At the end of the day, Costco remains the gold standard for blue-collar retail. They’ve proven that you can pay people a living wage, offer real benefits, and still be one of the most profitable companies on the planet. Whether you're a cashier or a manager, the pay reflects a simple truth: Costco values its people because it knows it can't run those massive warehouses without them.