On Tuesday, Walmart declared that it would be increasing wages for its Sam’s Club staff as part of its commitment to “thoughtful and significant investments” in its workforce.

The retail giant shared in a press release that pay rates for employees would rise by 3% to 6% effective November 2, with the increase dependent on each worker’s tenure at the store.

“Historically, retail salaries have been mainly focused on hourly pay, and discussing compensation for frontline staff in terms of future financial reliability has been rare,” wrote Chris Nicholas, the president and CEO of Sam’s Club, in a LinkedIn post on Tuesday.

This announcement also revealed that the starting wage for positions at the warehouse would increase to $16, alongside a reduction in the time needed to qualify for the maximum pay level.

The company highlighted prior enhancements for workers in the press release, such as an 11% rise in the number of full-time positions and the introduction of block scheduling options.

Comparison of Sam’s Club and Costco Wages

This pay increase appears to be a response to Costco, which recently raised their starting wage to $19.50 an hour and provided an additional $1 hourly increase to its staff in July, based on an internal memo reviewed by Business Insider.

In the announcement, Walmart indicated that, following the pay raise, the average salary for its frontline workers would be $19 per hour. In contrast, Costco’s average hourly wage is reported to be $22, according to ZipRecruiter.

In its latest earnings report issued in August, Walmart stated a gross profit margin of 24.4% on over $169 billion in revenue for the second quarter of fiscal year 2025.

During the quarter, Sam’s Club experienced a 4.7% growth in sales year-over-year, primarily driven by food and health and wellness products.