A full-time cashier at Costco makes about $60,000 annually. The average wage at Costco is over $29 per hour, and the company provides benefits to the vast majority of its employees.
Costco Cashiers Earn More Than Many College Grads
In an era where retail workers often struggle to make ends meet, Costco stands as a remarkable exception. A full-time cashier at the warehouse giant can earn around $60,000 per year—more than many college graduates make in their first jobs.
That's not a typo. While competitors pay close to minimum wage, Costco has built its business model around the radical idea that paying employees well actually makes financial sense.
The Numbers Don't Lie
As of 2024, Costco's average hourly wage exceeds $29 per hour. Entry-level positions start around $19-20 per hour, but wages climb quickly with tenure. Long-term employees can earn upwards of $30 per hour, plus regular bonuses.
Benefits sweeten the deal further:
- Health insurance (medical, dental, vision) available to most employees
- 401(k) retirement plans with company matching
- Paid time off and holiday pay
- Employee stock purchase programs
- Free Costco memberships
Why Pay So Much?
Costco's philosophy is simple: happy employees create happy customers. The company's turnover rate hovers around 6% for employees who've been there more than a year—compared to 60-100% at many retail competitors.
Think about what that means. Every time a retailer loses an employee, they spend thousands on recruiting, hiring, and training someone new. Costco largely avoids this churn.
CEO Craig Jelinek has repeatedly defended the company's wage practices against shareholder pressure to cut labor costs. His argument? Costco's approach isn't charity—it's strategy. Well-paid workers are more productive, more loyal, and provide better customer service.
The Costco Effect
The results speak for themselves. Costco consistently ranks among the most profitable retailers in the world. Same-store sales grow year after year. Customer satisfaction scores remain sky-high.
Employees stick around for decades. It's common to find Costco workers who've been with the company for 15, 20, even 30 years. That institutional knowledge is invaluable—and impossible to replicate with a revolving door of minimum-wage workers.
Perhaps most tellingly, Costco rarely advertises job openings. Word of mouth does the work. When positions do open up, they're flooded with applicants.
A Different Kind of Retail
Costco proves that the race to the bottom on wages isn't inevitable. You can pay workers well, provide genuine benefits, and still generate billions in profit. The company's market cap exceeds $350 billion—larger than many tech giants.
Next time you're loading bulk toilet paper into your cart, take a moment to appreciate the cashier scanning your items. They're earning a genuine middle-class wage, with healthcare and retirement benefits, in an industry notorious for poverty wages. That's not just good for workers—it's good business.