Bank of America Corp. said Tuesday that it plans to raise its minimum wage to $25 by 2025, putting it on track to exceed the federal government’s minimum hourly wage of $15 by then, despite a labor shortage in the country. It also said it requires all U.S. providers to pay their employees who work at the bank at least $15 an hour, instead of the current $14.50.
The second-largest U.S. lender joins companies like Amazon.com Inc. and McDonald’s Corp. and says it plans to raise wages to attract workers as the economy opens up more. Bank of America will raise the minimum wage for its employees to $20 an hour over the next two years and freeze pay for lower-paid workers, the company said Tuesday. Chief executive Brian Moynihan said hourly pay would rise to about $17 from May 1 and then rise to a higher rate in 2021.
Bank of America last raised its minimum wage to $15 an hour two years ago, and in March last year said it had raised the US minimum wage to about $20 an hour.
In addition, Bank of America has announced that all of its US suppliers are now required to pay employees who are obliged to the bank $15 an hour. Today, the hourly rate of $15 is the highest of all banks in the United States and the second highest in Europe and Asia.
The hourly minimum wage will rise by more than 121%, and the minimum wage for US workers will rise to $25 an hour by 2025. Bank of America’s commitment to pay its employees at least 50% of their $25-an-hour wage is based on the strong economic case for introducing a minimum wage of $15 for all employees of the bank’s US subsidiaries and subsidiaries.
Last month, Biden also signed an executive order raising the federal minimum wage for contract workers to $15 by early 2022 from the current $10.95. Over the past four years, Bank of America has raised its hourly minimum wage from $17, which rose to about $16.50 in 2019 in the first quarter of this year and $14.00 by the end of the year, to more than $15 in 2019 and to more than $25 by 2025.
In addition to the staff changes announced Tuesday, the bank is requiring all of its suppliers to pay its employees at least $15 an hour. Moynihan said 99% of salespeople already paid the minimum wage of $10.00 an hour for their workers and are now paying up to $13.50.
In 2018, JPMorgan Chase announced that it would raise the minimum wage from $15 to $18 an hour, depending on the number of employees and the size of the company’s workforce in the US by 2025. The bank’s decision to raise the minimum wage follows a push by Democrats to raise the minimum wage to about $15 an hour by 2030 and to 25 percent by 2020. Insiders reported, for example, that Amazon is offering its 1.5 million workers an entry-level wage of $10, McDonald’s is raising its minimum wage to $11 to $17 an hour, and Walmart recently raised pay for 425,000 front-line workers to $14.50, an increase of more than $1,500 a month.
Last month, Biden also signed an executive order raising the federal minimum wage for contract workers to $15 by early 2022 from the current $10.95. Vermont Senator Bernie Sanders’ Democrats wanted to include a provision to raise salaries in the 2018 US Senate budget, but the Senate rejected it.
In addition to the staff changes announced Tuesday, the bank is requiring all of its suppliers to pay its employees at least $15 an hour. Moynihan said 99% of sellers were already paying the minimum of $15 an hour, according to a Wall Street Journal report.
In 2018, JPMorgan Chase announced it would raise the minimum wage from $15 to $18 an hour, depending on the number of employees, the size of the workforce, and the cost of living for the company by 2025. The bank’s decision to raise the minimum wage follows a push by Democrats to raise the minimum wage to about $15 an hour by 2030 and to $25 by 2020. Insiders have reported that Amazon is offering its employees an entry-level wage of $14.50 an hour, McDonald’s is raising its minimum wage to $11 to $17 an hour, or Walmart has recently increased pay for 425,000 front-line workers.
Vermont Senator Bernie Sanders’ Democrats wanted to include a provision to raise wages in the 2018 US Senate Budget Bill, but the Senate rejected it.
Bank of America said Tuesday that it will raise the minimum wage to $20 an hour by 2021 and to $25 by 2025, a move that comes just days before banking industry leaders are scheduled to hold a grilling on Capitol Hill in Washington about the state of the U.S. economy and the future of their industry. The pay increase will affect employees of the Charlotte-based bank and its subsidiaries in the United States and Canada, the bank said.
