Costco plans to raise the starting minimum wage for its new employees by $1, up to $14 an hour, according to The Hill.
The retailer also will raise pay for other hourly workers by up to 50 cents, and the changes are expected to affect 130,000 employees.
Costco CFO Richard Galanti estimates the changes will cost $110 million to $120 million per year, but he credited a 7 percent decrease in Costco’s tax rate for making the raises possible.