Costco has always been known for being an excellent place to work, particularly for part-time employees. But I thought it was time to dig deeper into the employee benefits and discounts that Costco provides to their employees. Benefits that may influence your decision to interview or accept a job offer.
Before we get into the details, let’s clear up some basic questions that several commenters had.
What is the minimum age to work at Costco? – Their minimum employment age is 18 years old.
– Costco does hire seniors. Costco frequently hires senior citizens in departments such as pharmacy, optical, and member services.
Is there a mandatory retirement age? – Costco has no mandatory retirement age.
9 Must-Know Costco Employee Benefits, Perks, and Discounts
1. Comprehensive Health and Dental Insurance
You are eligible for health benefits if you have worked for Costco for at least 180 consecutive days and work more than 24 hours per week.
You can choose your own provider, and your out-of-pocket costs are low in comparison to the competition.
You also have access to a solid in-house prescription drug plan because the warehouse has a pharmacy.
Co-pays for generic drugs are $5, and brand-name medications have co-pays ranging from 5 to 15%.
Furthermore, all employees have access to a low-cost dental plan that includes teeth cleaning and some basic procedures such as cavity fillings.
2. Large 401(k) Match
Costco will match your 401(k) contributions up to a maximum of $500 per year.
So you’d be wise to add $1,000 per year (if possible) to maximise this benefit.
In this scenario, Costco will contribute $500 to your 401(k) if you contribute $1,000 per year. Not bad at all.
Costco will also contribute a percentage of your salary regardless of how much you contribute to your 401(k) (k). This begins after a year of employment and begins at 3% before gradually increasing.
Caution: If you leave Costco before the fifth year, you will lose a portion of what they contributed, but you will keep ALL of your contributions.
3. Is there a Costco employee discount?
Employees, like everyone else, pay the same price.
But…when I asked a Costco employee about it, she said that one nice perk they do get is the ability to shop after hours when the store is empty, which saves them a lot of time.
After all, isn’t time money?
4. Starting Salary of $17/Hour
According to this Today Show article, Costco’s starting hourly wage has recently been increased to $17 per hour.
Service Assistants start at $17/hour, while Service Clerks start at $18/hour.
Do you want to be a meat cutter? You’ll begin at $18.50 per hour.
In comparison to other “big box” employers, this is a higher wage.
When you factor in Sunday shifts, this wage skyrockets. More on that in a moment.
In case you were wondering, hourly Costco employees “top out” at around $26 – $28/hour after 6-8 years of service.
5. Their Paid Time Off (PTO) Policy Isn’t Horrible
Paid time off is important, and these Costco benefits are not to be overlooked.
After one year of employment and at least 2,000 paid hours, you will begin to accrue paid time off.
PTO is earned based on years of service and is calculated as follows:
– 1 week PTO after 1 year of employment
– 2-4 years: 2 weeks vacation
– PTO for children aged 5 to 9 years: 3 weeks
– 10-14 years: 4 weeks paid time off
– 15 years and older: 5 weeks PTO
If you work less than 2,000 hours, your PTO is prorated.
It’s also worth noting that you can only roll over your PTO to the next year; it cannot be carried over from year to year.
Costco WOULD LIKE YOU TO USE YOUR VACATION HOURS…
So make use of it before you lose it.
6. Is there a free turkey? Um, OK.
According to this Business Insider article, Costco employees receive a free turkey on Thanksgiving.
Cool gesture, but not quite the same as a true Christmas bonus; more along the lines of a “Jelly of the Month Club” type bonus.
If employees do not want to take the turkey home, they can apparently donate it to a charity.
7. On Sunday, earn “Time and a Half.”
You can make a lot of money if you work on Sundays on a regular basis because you’ll be paid time and a half.
So, if you normally earn $15 per hour, your pay will be increased to $22.50, which is a nice raise.
By working on Sunday, you can increase your weekly hourly rate to $16.50 per hour.
8. You will receive four free memberships.
In addition, as a Costco employee, you will receive four free annual memberships.
One membership for you and three for anyone you want.
Make an informed decision, young padawan.
9. Opportunities for Advancement
Speaking with several Costco employees, it appears that everyone agrees that your success is largely determined by your work ethic and how badly you want to advance within the company.
Work hard and you will advance. Shoot for a supervisor position, then a store manager position.
Your Costco success is only limited by YOU and your attitude.
Costco’s “Bonus Time”
I also got the lowdown (sort of) on how Costco employee bonuses work.
So far, here’s what I know…
– Bonus Every Six Months: According to this Indeed.com thread, an employee mentioned receiving a $2,500 to $3,500 bonus every six months, depending on years with Costco.
– Annual Bonus up to $5,500: Some employees, according to PayScale.com, receive an annual bonus of up to $5,500. Especially the in-house optician (eye doctor).
