Costco raising minimum wage to $14 an hour

Retail giant Costco said Thursday that it would raise its starting minimum wage to $14 an hour, a $1 increase for entry level positions.

MarketWatch reported that the company will also raise wages for other hourly workers by up to 50 cents.

The changes will take effect on June 11 and are expected to affect 130,000 employees.

Costco finance chief Richard Galanti said the change is expected to cost between $110 million and $120 million annually, but that due to the new GOP tax law, the company expects a 7 percent drop in its tax rate, according to MarketWatch.

{mosads}The wholesale chain announced its quarterly earnings on Thursday, reporting a $750 million profit, a $50 million increase from last year, and a total revenue of $32.36 billion.

The company also announced Thursday that it has had a strong showing in e-commerce, with a reported 36.8 percent increase in online sales, according to USA Today.

Other major companies, including Walmart and Starbucks, announced in the past year that they would raise wages or invest in workers in other ways after the GOP-backed tax bill passed, resulting in major corporate tax cuts.