Fresh data from Costco Wholesale ( COST ) illustrates a key reason it’s thought of as a good retail employer: Its wages are substantially above the national industry average.

On the company’s Thursday earnings conference call, CEO Ron Vachris said Costco’s average wage has reached “just north” of $30 per hour after a round of wage increases brought its minimum wage to $19.50 per hour and added 50 cents per hour to each pay tier.

Costco has long advocated the nation that higher wages lead to more productive employees , which leads to higher sales. CFO Gary Millerchip on Thursday said wages are a “critical part of delivering a better experience for our members.”

Costco Over $5 Above Retail Average

The warehouse retailer is roughly $5.50 above the retail average of $24.57 per hour as reported by the Bureau of Labor Statistics for August. Retail broadly saw the second lowest average wage in the BLS data at $24.02. That put it above only hospitality at $22.18, with an average wage over $51 for workers in the utilities sector.

Wages are one reason Costco has low employee turnover , along with its tendency to promote from within, which Vachris also highlighted in Thursday’s call. He said the company promoted 95 new warehouse managers in fiscal 2024, and 85% of those promotions were people who started as an hourly worker at Costco.

The overall average private nonfarm wage in August was just under $34, according to the BLS data.