Complete Guide To Costco Employee Discounts Here.

Originally posted on September 24, 2022 @ 4:33 pm

Costco is a wholesale warehouse club that competes with Sam’s Club (owned by Walmart), BJs, and retailers such as Target, Amazon, and Kroger.

Since its inception in 1983, the multinational membership club has aimed to provide branded items at lower prices than its competitors. As a result, it has expanded into one of the leading retail businesses in the country, with Waqf following in the process.

According to most Costco employees, the job has more perks than meets the eye. Costco has struck a chord with its growing fan base with lifetime membership opportunities, scholarship programs, and competitive wages.

With more than 200,000 employees, Costco is a giant in wholesale retail. But, do these employees enjoy additional perks like in-store and online merchandise discounts? Unfortunately not! But there is more to the story.
Costco doesn’t give its employees discounts, but it does offer them a number of great benefits, including health insurance, overtime pay, shopping hours, free exclusive memberships, and 401k plan enrollment.

If you plan to work at Costco in the future, this article is for you! Read on to learn how you can uniquely benefit from being a Costco employee.

Working at Costco: Here are 9 Employee Benefits and Perks

Despite the lack of post-employment benefits, current and former employees often rave about the benefits of working at Costco. Let’s look at the nine benefits you get from working for this warehouse retailer.

1. Regular minimum wage increases

Although it’s not technically a “benefit,” Costco pays its employees more than the minimum wage. With a minimum wage of $17 (by 2021), the company saves money on training new hires by keeping front-line workers happy.
Meanwhile, supervisors also continue to receive regular pay bumps. Impressively, Costco’s $1 minimum wage increase comes less than a year after the previous $1 increase. This way, employees know they will get paid well, and the expectation of a wage increase keeps them in the company for the long haul.

2. Overtime pay on Sundays

Although not required by the government, Costco ensures that all of its employees, part-time or full-time, receive time-and-a-half or overtime pay on Sundays. This is regardless of how many hours the employee works each week. If you do the math, an employee making a minimum wage of $17 an hour would earn $25.50 instead of that every Sunday they are at work.

3. Health benefits and life insurance

Costo employees’ access to employer-sponsored health benefits is perhaps one of their biggest advantages. With health care costs rising worldwide, the impact of health insurance on overall employee costs cannot be understated.
Even if it doesn’t show up in pay, access to health benefits like these can save employees thousands of dollars annually. In addition, you get the benefit of a dental coverage plan for basic procedures, vision care, and basic life insurance.

4. 401k plan enrollment

Retirement plans may not be an immediate concern for many people who are just starting out in their careers. However, Costco uses 401k plan enrollment to ensure long-term employee retention. For every dollar, Costco matches 50 cents, up to $500 a year. The matching amount from the employer can add up to a significant amount, offering you a cushion after you retire.

5. Free Executive Membership

Another employee perk is a free executive membership, which costs about $120. However, the main benefit of Executive Membership is 2% cashback per year up to $1000. Additionally, employees receive three additional basic memberships valued at $60 and a lifetime membership card for 25 years or more.

6. Paid Leave

In addition to sick days and vacations, you also get paid annual leave at Costco. After a year, you have one week off, which increases with time and duration. For example, paid leave increases to two weeks after two years and three weeks after five years of employment. If you want to work longer for a wholesaler, after fifteen years at Costco it can go to five weeks.
While you can’t say exactly how much money you’ll take home because of this policy, due to various factors, it’s a welcome benefit for keeping people employed for the long term.

7. Annual Bonus

At Costco, the more you work, the more benefits you’ll enjoy. The company provides two additional checks per year for long-term employees who work up to one hour.

8. Free turkey on Thanksgiving

Although not a traditional “perk,” Costco employees can pick up a free turkey for themselves on Thanksgiving. Not to mention all the free samples they get to eat! Just another reason to work at Costco.

9. Shopping after hours

Employees also have to skip long checkout lines. They can shop after hours, making it easy to get everything on their list quickly. They also get their hands on hot tickets and clearance items before anyone else. Now that’s a benefit if ever there was one!

Why doesn’t Costco give its employees a discount?

Now you might be thinking that if Costco offers such great benefits, why not add employee discounts to the mix? But there’s a good reason why they don’t provide any special price cuts for employees, and it’s all about their business model.

Costco largely makes money from its membership fees rather than its merchandise, which is already sold at great deals. If the company offers discounts to employees, they will lose money. Instead, they offer free membership and great benefits to employees.

Are part-time Costco employees eligible for health benefits?

Many employees love working at Costco (hello, 4.1-star Glass Door rating!) because their benefits aren’t limited to full-time workers. Even part-time employees get health benefits and other perks at this retail warehouse giant. And, as you work your way up the Costco career ladder, these benefits increase – making them a great employer.

The bottom line

Costco employees do not receive discounts both in-store and online. However, they are compensated with the best benefits for both full-time and part-time employees. Benefits include health insurance, vision care, life insurance, excellent minimum wage, double annual bonus, free executive membership, and 50% 401k matching.

Plus, you get benefits like after-hours shipping, a free turkey on Thanksgiving, and first pick on clearance and hot-ticket items. All of these offers almost make you forget that Costco doesn’t have employee discounts on merchandise. With such significant benefits to working at Costco, the multinational corporation has earned the love (and recommendation) of current and former employees.

 

 

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