Initial pay at Sam’s Club remains below Costco, which in July raised its starting wage for US workers to $19.50.

The club chain, owned by Walmart Inc., said store employees’ starting wages in the US will increase to $16 from $15.

This will lift Sam's Club's average hourly employee pay to above $19 from the current $15 on top of their potential to earn thousands of dollars in bonuses annually, the retailer said. Sam's Club said the new pay plan gives employees a predictable roadmap of pay increase milestones and a "longer-term perspective" on how they're balancing their personal financial goals.

Entry-level workers will see wages start at $16 per hour, an increase from the $15 per hour set three years ago, according to a press release from Walmart, Sam’s Club’s parent company. The company also says wage increases will rise between 3% and 6% based on seniority so workers can gain maximum compensation quicker.