Sam’s Club Is Boosting Pay Increases and Raising Hourly Wages To Start at $16 Per Hour

Walmart announced on Tuesday that it would be raising pay for its Sam’s Club employees as a part of what the company called “deliberate and meaningful investments” in its workers.

Sam’s Club said in a press release that it would increase pay for hourly associates by between 3% and 6% starting Nov. 2, depending on how long the employee has worked at the members-only store. This is a change from the current raise structure of 3% for hourly workers, according to Business Insider. Sam’s Club noted that this is likely to bring the average hourly rate for associates to over $19.

“Until now, retail compensation has largely been about hourly wages, and it’s almost unheard of to talk about frontline associate compensation in terms of a predictable financial future,” said Chris Nicholas, president and CEO of Sam’s Club.

“I’m putting the lessons I learned in my hometown to work again — to find ways to help our associates chart their own fulfilling career paths that can improve their lives and financial futures,” he wrote in a LinkedIn post. “Today, I’m proud to share that we’ve made a pair of investments that do just that — reimagining our workforce compensation and providing longer-term financial predictability for nearly 100,000 hourly associates across our company.”

These investments include an increase in the minimum starting pay, rising from $15 to $16 per hour, and the “new compensation plan” that will increase current employees’ pay based on years of service.

“This is just the latest milestone in what’s been a multi-year journey to improve our associate experience and provide more pathways to generational well-being. Since 2019, we have made a dozen wage investments, from starting pay increases to annual stock grants, that have impacted frontline associates at every level and in every area of our clubs,” he continued. “These complement other opportunities we’ve created for associates — such as block schedules to provide better work-life balance and new technology like the Me@Sams app that gives access to pay, learning and benefits details — to encourage growth, embrace ownership and bring greater simplicity and convenience to their roles.”

“This is why we’re introducing this new compensation plan for frontline associates, enabling them to reach key milestones in their pay range faster. At the same time, we’re also increasing the minimum start rate, which brings us to a nearly 30% increase in our average hourly rate over the last five years,” Nicholas concluded.

According to the company, these changes will allow associates to reach their maximum pay rate in eight years, four years sooner than before.