Costco Australia Pay Rates 2026: Why Costco Pays Above Award

Costco Australia is covered by the General Retail Industry Award (MA000004), but operates under a registered enterprise agreement that pays above award minimums for most roles. The EA terms apply if they're more generous than the award; the award is the legal floor.

This covers warehouse staff, cashiers, food court, optical, hearing aid centre, tyre centre, and members services teams.

Costco's enterprise agreement rates are typically 15-20% above award for entry-level roles. Award Level 1 sits at $27.81/hr; Costco's start rate for new hires is generally around $26-28/hr permanent (varies by site and tenure).

Costco also offers regular pay step increases tied to hours worked, which is a structural advantage over the award where step changes only occur with classification changes.

Costco's enterprise agreement preserves penalty rates for evening, weekend, and public holiday work, generally at award percentages or higher. Above-award base × award penalty multiplier means Costco penalty pay is typically higher than its competitors.

Three structural reasons Costco's pay is generally above competitors:

• Higher base rate negotiated in its enterprise agreement
• Regular step progression tied to tenure and hours
• Member-funded model means Costco operates with leaner staffing and pays each role more

This is one reason Costco regularly tops Australian "best employer" rankings for retail.

Even at above-award rates, things can go wrong:

• Was your step progression applied at the right hours threshold?
• Are weekend penalties correctly applied to your Costco base rate, not the lower award figure?
• Is your classification level correct for your role?

If unsure, request the full enterprise agreement from HR — Costco staff are entitled to a copy.