On Tuesday, the Bank of America, the consumer banking giant, announced that it will raise its minimum wage from $20 to $25 an hour by 2025. The lender is headquartered in Charlotte, North Carolina, has over 210,000 employees working at different levels, and will receive the new pay.
The announcement is likely to stir competition as this will be the highest minimum wage, and its peers will have to follow suit. The majority of banks have been increasing wages as the outside groups pressure the industry to tackle the present wealth inequality.
The bank has regularly adjusted its minimum wage in the past four years. For instance, in 2017, this financial institution paid $15 an hour, raised it to $17 in 2019, and now $20 in 2020 amid the pandemic.
Also, the Bank of America requires its U.S-based vendors to pay their workers a minimum wage of $15 per hour or higher, a standard that almost all of its vendors have complied with.
The current minimum wage is $7.25, and democrats are pushing to be increased across all industries. Present Biden also promised to increase the minimum pay to $15. However, this issue was not included in the economic relief package proposal.
This follows similar announcements from retail giants, ride-hailing, and fast-food chains companies where they plan to increase the wages for all entry-level jobs. This is in addition to other incentives like referral bonuses and signing bonuses as the country’s economy gets back on track after the pandemic losses.
These announcements are celebrated by labor activists and lawmakers who have been pushing for a higher minimum wage. Brian Moynihan, the CEO of Bank of America, said, “This will have a wage pressure up the line – we’ve absorbed it for many years. They key is for big companies like ours, is to set a standard.”
Sheri Bronstein, chief human resources at the bank, said, “A core tenet of responsible growth is our commitment to being a great place to work which means investing in the people who serve our clients. That includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.”
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