We all know Costco members get a lot of benefits — from discounted gas to cheap Costco eye exams and heck, even deals on Costco Travel. But just because a company is great to their customers doesn’t always mean they’re great to their employees. So I did some digging about Costco employee benefits (and even talked to a few employees) to see what I could find.
Turns out, Costco employees get some pretty stand-out perks, even for part-timers. And in 2023, Costco ranked No. 3 on Forbes’ list of the best large retail employers, which only adds to their credibility.
While there's actually no such thing as a Costco employee discount, there are a whole bunch of benefits that come with the job. For instance, I discovered that Costco employees get a free Executive membership (worth $130 per year), a free turkey around Thanksgiving, and a handful of other surprising perks. And the average retention rate at Costco is an impressive 90% for employees who've been there for at least one year. Not bad, huh?
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Costco Employee Benefits
1. Free Executive membership (worth $130)
If you’re a Costco employee, you’ll get a free employee membership as soon as you're hired. This card lets you shop at any Costco warehouse, including at a Costco Business Center. You also get an additional membership card to share with a spouse or domestic partner.
After 90 days, your basic membership gets upgraded to the Executive level, which lets you earn 2% cash back on your purchases. You can also get two additional memberships to add to your account, but these will be at the Gold Star level.
TIP: The free employee memberships renew every year for as long as you work there. If you retire from Costco with at least 25 years of service, you'll get a free lifetime employee membership.
2. Special shopping hours (which means first dibs on new items and clearance)
Depending on your store location, you may be allowed to do some shopping after hours, when the store is free of customers. This might be one of the most practical perks that Costco offers, and a strategic way to get your hands on trending stuff and new Costco clearance items.
I asked an employee at my local Costco Business Center how this works because I was curious. She said that it's up to the store manager at each location, but generally you're allowed to purchase some items when the store is closed. The manager then helps with checkout (it's card-only).
Another Costco employee I spoke with at a different location said that her store doesn't offer special shopping hours due to inventory issues, so your mileage may vary on this one. Have you ever seen a Costco empty? To me, it sounds like a dream.
TIP: If you're not an employee, we've found that the best time to go to Costco is on weekdays as soon as they open, or right before they close.
3. Medical benefits for full-time and part-time workers
I reviewed Costco's benefits website and found that both full-time and part-time Costco employees can enroll in health benefits, though you do have to be 18 or older to work at Costco.
Here's a peek at some of the benefits you have access to as an employee (as of the 2024 plan year):
Basic life insurance (no cost)
Breast pump coverage
Hearing aid coverage
Medical, dental, and vision coverage
Mental health support
Prescription drug coverage
Short-term counseling sessions
As for when you're eligible for Costco benefits, it depends on your type of employment. If you're an hourly employee, your coverage begins on the first day of the month after 60 days of service. If you're salaried, your coverage starts on the first day of the month for the month after you're hired.
TIP: Seasonal Costco employees, interns, and temporary employees aren't eligible for medical benefits.
4. Matching contributions to a (401)k
According to Costco's 2023 Annual Report, "the company's 401(k) retirement plan is available to all U.S. employees over the age of 18 who have completed 90 days of employment.”
The best part is that Costco employees who make payroll deductions to a 401(k) retirement plan will get a matching contribution from Costco. According to their most recent 401(k) booklet, this matching contribution will be either 50% of your payroll contribution or $500 — whichever is less.
You can also earn additional matching contributions (3% – 9%) based on your number of years of service.
5. Costco stock
You'll just need to choose the dollar amount you want to invest each pay period, and the amount will come right out of your paycheck.
A bonus: all the fees and commissions for these trades are paid for by Costco.
Costco Employee Salary Perks
6. Starting pay of $18.50 per hour
How much does Costco pay? According to this pay range sheet on Costco's job portal, Costco employees have a starting pay of $18.50 per hour (this is similar to the average hourly rate at Sam's Club, which is around $19 as of Nov. 2, 2024).
That means the average Costco employee is paid 155% higher than the federal minimum wage of $7.25. Cashiers make at least $19.50 per hour. And that’s just the starting rate.
The average hourly wage at Costco is closer to $29, according to statistics shared during Costco's Annual Meeting of Shareholders in January 2024. After talking with a Costco employee at a Tampa, Florida, location, I learned that employees get raises every 6 months until you get topped out.
“In March 2023, we increased the top of the wage scales by 85 cents per hour in the U.S, Canada, and Puerto Rico. In September of 2023, we increased the starting wage to at least $18.50 for all entry-level positions in the U.S.” — Costco's 2023 Annual Report
As for what positions pay the most at Costco, truck drivers and employees in specialized positions — like in the optical center or pharmacy — earn some of the highest hourly rates. I should note here that although your starting pay as a Costco employee is much higher than the federal minimum wage, you’ll likely need to start as a part-time employee. They consider it a promotion when you move up to full-time status.
7. Sunday ‘Premium Pay’
Missing the Sunday football games may be worth it for the extra pay incentive you get at Costco. No matter how many hours you’ve worked in the week, Costco employees get time-and-a-half pay for working on a Sunday. So if you’re making $18.50 an hour, then you’ll make $27.75 an hour on Sundays.
Since Costco has most of their employees working five days a week regardless of full- or part-time status, I’d aim for Sundays to be one of my days.
8. Bonuses after about six years
Once you've worked a certain number of hours at Costco (it seems to be around six years), you'll be eligible to receive twice-yearly bonuses called "Extra Checks."
The amount of your bonus depends on your years of service, but Costco employees on Reddit report that it ranges from $2,500 - $3,500 per check. Supervisors and managers can qualify for additional bonuses, too.
Additional Costco Employee Benefits and Discounts
9. Free turkey for Thanksgiving
Tell Grandma you’ll be supplying the turkey for Thanksgiving if you become a Costco employee. That's because Costco gives all of their workers a free frozen turkey for Thanksgiving (it's awarded in the form of a coupon).
I confirmed this perk with an employee at my Costco location, who said you get one turkey coupon per employee.
Don’t need a turkey? You can have Costco donate one on your behalf.
10. Ability to take off for ‘winter leave'
From January through March, Costco employees can take off any time, which is a super great perk. The time off can either be unpaid, or you can use your accrued PTO hours. Depending on which state you live in, you’ll have a maximum number of days you can take off during the three-month period.
Some employees have reported only being able to take 21 days off, while others said up to 4 weeks. One person even reported being able to take off all 11 weeks.
11. Adoption assistance up to $5,000
As long as you've worked at Costco for at least 12 months continuously, you'll be eligible to receive their adoption assistance benefit, as detailed on their Benefits website.
With this benefit, Costco will reimburse you up to $5,000 per child to cover adoption fees, legal fees, and related expenses.
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