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Costco workers in the US and Canada are set to benefit from improved pay and enhanced vacation entitlements under a new employee deal announced by the retailer.
The warehouse chain’s latest employee agreement introduces a new minimum wage of $20 per hour, while the average wage has risen to $31.90, according to CBS.
The pay boost is part of a three-year contract that also guarantees additional wage rises in 2026 and 2027. Employees will receive a $1 per hour raise in each of those years, further increasing their earnings.
Junior clerks and assistants are also included in the deal, with their pay climbing by 50 cents an hour. Their wages will rise to $21 per hour in 2026 and $22 in 2027.
Costco CEO Ron Vachris described the new agreement as a reflection of the company’s commitment to "providing industry-leading pay and benefits for our employees," according to Fortune.
Enhanced vacation benefits
Alongside the wage increases, Costco is improving its vacation package. New employees will now receive additional vacation days in their first year, while long-serving staff will also gain extra time off.
Employees who have been with the company for 30 years will now receive six weeks of vacation, up from the previous five.
The enhanced benefits package is part of Costco’s efforts to retain staff and strengthen its reputation for offering competitive pay and employee support under Vachris's leadership.
Vachris will also be hoping the latest deal for employees will put an end to the threat of strike, after the powerful Teamsters union which represents the workforce pushed for improved paid family leave, stronger seniority rights, increased sick time, and protections against workplace surveillance.
The buy-in-bulk retail came under fire from Sean O'Brien, General President of the Teamsters, who criticized Costco’s approach, calling it a “troubling unwillingness to bargain.”
