Bank of America (NYSE:BAC) announced on Wednesday that it is raising its U.S. minimum hourly wage to $23, effective from October. This is part of the bank's broader commitment to reach a minimum wage of $25 per hour by 2025. The latest increase will result in an annualized salary of at least $48,000 for full-time employees starting this year.
This is not the first time the financial institution has demonstrated leadership in establishing a competitive minimum rate of pay for its U.S. hourly employees. Over the past six years, Bank of America has progressively raised its minimum hourly wage from $15 in 2017, $17 in 2019, $20 in 2020, $21 in 2021, and to $22 in May 2022.
"Providing a competitive minimum rate of pay is foundational to being a great place to work," Sheri Bronstein, chief human resources officer at Bank of America, said on Wednesday. She added that through investing in benefits to attract and develop talent, the bank is investing in the long-term success of its employees, customers, and communities.
The move comes amid a backdrop where wages have been rising nationwide but have struggled to keep pace with inflation. According to a report from SmartAsset, job salaries increased by 5.1% between December 2021 and December 2022; however, inflation averaged at 8% during the same period.
Bank of America's decision follows similar actions taken by other banks over recent years. In 2022, Truist Financial (NYSE:TFC) increased their minimum wage to $22 per hour and JPMorgan Chase (NYSE:JPM) announced a rise to between $20 and $25 per hour depending on location. Wells Fargo also raised its minimum wage for hourly workers to between $18 and $22 in 2021, also depending on location.
Bank of America's commitment to its employees has been recognized externally, earning it spots on JUST Capital's #1 Company for Workers list, LinkedIn's "Top Companies in the U.S." and Fortune's "100 Best Companies to Work For" list for the fifth consecutive year.
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