Costco has always been known as a great place to work, especially for people who only want to work part-time. But I thought it was time to find out more about the benefits and discounts that Costco gives to their employees. There are some perks that might change your mind about whether or not to accept a job offer or not.
Before we get into the details, let’s answer some basic questions that several commenters asked.
What’s the minimum age to work at Costco? – The youngest person they will hire is 18 years old.
Costco does hire older people. Seniors are often hired by Costco in the pharmacy, optical, and member services departments.
Is there a certain age when you have to retire? Costco doesn’t have a set age when people have to retire.
9 Must-Know Costco Employee Benefits, Perks, and Discounts
1. Good dental and health insurance
You can get health benefits if you’ve worked for Costco for at least 180 days in a row and put in more than 24 hours per week.
You can choose your own provider, and out-of-pocket costs are lower than with other plans.
Also, since there is a pharmacy inside the warehouse, you have access to a good prescription drug plan that is only available to warehouse employees.
Co-pays for generic drugs are $5, and they range from 5% to 15% for brand-name drugs.
Also, all employees have access to a low-cost dental plan that covers things like cleaning teeth and getting cavities filled.
2. 401(k) match that gives a lot
Costco will match half of what you put into your 401(k), up to a maximum of $500 per year.
So, if you can, you should put an extra $1,000 a year into this account to get the most out of it.
In this case, Costco will put $500 into your 401(k) if you can put $1,000 into it every year. Not bad at all.
Costco will also put some of your pay into your 401(k), no matter how much you put in (k). This starts after you’ve been working for a year. It starts at 3% and goes up every so often.
Caution: If you leave Costco before the fifth year, you’ll lose some of what they’ve put in, but you’ll get to keep everything you’ve put in.
3. Does Costco offer discounts to people who work there?
No, employees don’t pay less than anyone else.
But when I asked a Costco worker about this, she said that one nice perk is that they can shop when the store is empty after hours, which saves them a lot of time.
After all, isn’t time money?
4. Pay starts at $17 per hour
According to an article on Today Show, Costco recently raised its starting hourly wage to $17.
Service Assistants start at $17 per hour, while Service Clerks start at $18 per hour.
Want to be a butcher? You’ll start at $18.50/hour.
As a point of comparison, this wage is higher than what other “big box” employers pay.
When Sunday shifts are taken into account, this wage goes up by a lot. More to come on that.
Also, if you were wondering, the “top” hourly wage at Costco is between $26 and $28, and it takes 6 to 8 years to get there.
5. Their policy for paid time off (PTO) doesn’t stink.
Paid time off is a big deal, and this Costco benefit is nothing to laugh at.
After working for a year and getting paid for at least 2,000 hours, you’ll start getting paid time off.
PTO is earned based on the number of years you’ve worked, and it breaks down like this:
– After a year of work, you get a week off.
– 2-4 years: 2 weeks PTO
5–9 years: 3 weeks of vacation
– 10-14 years: 4 weeks PTO
– 15+ years: 5 weeks PTO
If you work less than 2,000 hours, your PTO will be split up in a way that makes sense.
Also, it’s important to know that you can only roll over your PTO to the next year; it can’t be carried over from year to year.
Costco WANTS you to take advantage of your vacation time…
so use it up before you lose it.
6. Is the Turkey Free? Um, OK.
This article from Business Insider says that Costco employees get a free turkey on Thanksgiving.
It was a nice gesture, but it wasn’t really a Christmas bonus. It was more like a “Jelly of the Month Club” bonus.
It sounds like employees who don’t want to take the turkey home can give it to a charity instead.
7. Sunday is “Time and a Half” day.
If you work every Sunday, you can make a lot of money because you’ll get paid time and a half.
So, if you usually make $15 an hour, that will go up to $22.50, which is a nice pay raise.
By working on Sunday, your weekly hourly rate goes up to $16.50 per hour, according to a quick calculation.
8. You’ll get 4 memberships for free.
Also, if you work at Costco, you’ll get 4 free memberships that last a year each.
You get one membership, and you can give the other three to anyone you want.
Young Padawan, make a good choice.
9. Chances to get ahead
From talking to several Costco employees, it seems that everyone agrees that a big part of your success depends on how hard you work and how much you want to move up in the company.
If you work hard, you’ll get ahead. Even better, try to become a supervisor and then a store manager.
You and your attitude are the only things that can stop you from doing well at Costco.
Costco has “Bonus Time”
I also (kind of) found out how bonuses work for Costco employees.
So far, this is what I know…
– Bonus Every Six Months: In this thread on Indeed.com, a Costco worker said that, depending on how long they had worked there, they got a $2,500 to $3,500 bonus every six months.
– Annual Bonus of up to $5,500: PayScale.com says that some employees get a bonus of up to $5,500 every year. Especially the in-house eye doctor (eye doctor).