8 companies that pay above minimum wage

As President Barack Obama’s proposal to raise the federal minimum wage from $7.25 an hour to $10.10 stalls in Congress, companies like Swedish furniture giant IKEA are pushing forward with pay hikes of their own.

Twenty-three states, including Washington, D.C., have wages that top the federal minimum. Cities across the U.S. are also adopting a medley of higher wages with Seattle in early June raising minimum pay to $15 an hour, the highest in the country.

The last time the U.S. saw a wage hike was back in 2007 when minimum pay was raised in three increments over a two-year period from $5.15 an hour to $7.25 an hour.

A Congressional Budget Office analysis in February found that raising the minimum wage would lift 900,000 people out of poverty but also result in a loss of 500,000 jobs by 2016. There are about 45 million people currently living below the poverty threshold, CBO estimates.

But companies like IKEA and Gap aren’t waiting around for a federal mandate. Here’s a look at eight companies paying entry-level workers more than the federal minimum, which could add some pressure to McDonald’s Corp and Wal-Mart Stores Inc.

IKEA

IKEA is raising its minimum hourly wage by about 17% to $10.76 on Jan. 1, 2015. The pay will be pegged to a cost-of-living calculator, which factors in taxes and housing, food and transportation costs based on the store’s location. The company also said it will not be raising prices as a result of the wage hikes.

Gap

Gap Inc. is bumping up its minimum hourly wage to $9 an hour this year and $10 an hour in 2015. More than 65,000 workers will see a pay increase. “It’s good for business,” Gap spokeswoman Paula Conhain said in a statement. It’s helping the store “attract and retain the best talent in retail, which is a real competitive advantage for us,” she said. The Huffington Post reports Gap has since seen a spike in job applicants since it unveiled its plan to raise pay.

Costco

Costco Wholesale Corp.’s hourly pay starts at $11.50 an hour and the average employee makes about $21 an hour, according to a Bloomberg Businessweek profile. The wholesale retailer’s CEO and President Craig Jelinek has been a vocal advocate of Obama’s push to raise minimum wage above $10. The company comes in second, behind Google Inc., on Glassdoor’s list of 2014’s Top 25 Companies for Compensation & Benefits.

Whole Foods

Whole Foods Market Inc. starts workers off at $11 an hour and many are eligible for benefits and stock options. A letter to shareholders from earlier this year shows Whole Foods’ average hourly wage in 2013 was nearly $19 an hour.

In-N-Out

The fast-food company pays all new hires a minimum of $10.50 an hour, according to its website. In-N-Out also offers paid vacations, flex schedules and a 401(k) plan for full-time employees.

Ben & Jerry’s

Ben & Jerry’s pays entry-level workers $15.97 an hour, based on the living wage in Vermont, a company representative told the Huffington Post. The benefits package includes three free pints of ice cream, frozen yogurt and sorbets every day.

Trader Joe’s

Trader Joe’s workers start out at $13.29 an hour and also get free dental and vision care, paid time off and a retirement plan.

Zappos

The online apparel company Zappos, owned by Amazon.com Inc., pays its call-center workers $16 an hour, according to Forbes.