Does Costco Offer Special Discounts For Employees?

On the Costco subreddit, one user made an observation that's easy to take for granted: "I've never ever once encountered ... [an] unhelpful Costco employee. Their service is literally impeccable. Always." It stands to reason that the staff at Costco could embrace their work so enthusiastically because they get privileged access to better prices through a staff discount.

However, Costco staff don't get special discounts on purchases. They pay the same amount as any cardholder who walks through the door. Instead, Costco employees receive a range of other perks, including a free membership, insurance, 401(k) contributions, special shopping access, and more. Even without a discount, online reviews show that Costco staff is well looked after. "They take great care of us!" one anonymous employee wrote on Reddit.

Costco employees don't have to worry about studying up on what to know before buying a Costco membership for the first time. According to a 2022 employee agreement published online, new staff receive a free membership, plus an additional card for a spouse or domestic partner. After the 90-day probationary period, the memberships are upgraded to Executive level, valued at $130, plus employees get two more standard add-on membership cards to distribute (just make sure their friends don't break any Costco membership rules). Executive memberships also get an annual 2% cash back reward. Plus, the employee gains access to Costco's wholesale pricing via their membership.

In addition to a Costco membership, the retailer offers its employees a slate of other generous benefits. First, employee wages start at $20 an hour, which is a decent bump from the median hourly rate of retail workers in the U.S., which the Bureau of Labor Statistics lists as $16.19 per hour. Staff also receive time-and-a-half for working on Sunday, called "Sunday premium pay,"which offers a significant boost in earnings every week.

After 90 days of working for Costco, staff over the age of 18 unlock 401(k) retirement plan options, with employer contributions matching 50% of employee contributions up to $500 annually. Employees may also get an additional discretionary contribution after a year, starting at 4% and increasing to 9% after 25 years of service.

Eligible employees also access various health benefits, including insurance, which several employees online have claimed is a major draw in working for and staying with Costco. There are also some other perks in working at Costco, such as receiving a free turkey at Thanksgiving and being able to shop during special employees-only hours. These are just some of the things employees know about the chain that most shoppers don't.