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A major U.S. bank, with over $2.6 billion in assets, just raised its minimum wage.
Bank of America revealed on Wednesday that it plans to increase the minimum wage for its U.S. hourly workers, both full-time and part-time, to $25 an hour. This adjustment will be implemented next month, bringing the annual minimum salary for full-time U.S. staff to over $50,000.
This wage hike represents the final step in a strategy set forth in 2017 to elevate the bank’s entry-level pay from $15 an hour to $25 an hour by 2025. Employees have been earning $24 an hour since October 2024. With the new $25 an hour rate, the initial salary for full-time U.S. workers will have risen by over $20,000 since 2017.
“This pay increase gives our team members an opportunity to join us, spend their entire careers here, and support their families,” Bank of America’s CEO Brian Moynihan shared with Bloomberg.
Moynihan highlighted that the increased minimum wage has significantly reduced staff turnover, with the rate of departures dropping from 20% in 2017 to roughly 10% this year. He also noted a decrease in customer loss due to this change.
Bank of America CEO Brian Moynihan. Photographer: Betty Laura Zapata/Bloomberg via Getty Images
By adopting new technologies such as AI, Bank of America has trimmed its workforce in certain sectors, Moynihan mentioned to Bloomberg. The intent is to channel more financial resources to remaining employees and focus on “re-skilling them,” he explained.
Bank of America had about 213,000 employees as of July, according to its newsroom.
Amazon Is Raising Pay
This week, Amazon also announced plans to elevate its average hourly wage to over $23 per hour. The retail behemoth is committing more than $1 billion to augment wages and lower healthcare costs for its workforce.
Full-time employees will have their pay increase by an average of $1,600 per year.
Meanwhile, Amazon’s entry-level healthcare plan will cost $5 per week and $5 for co-pays beginning next year. Amazon stated that the change is a 34% reduction in weekly contribution costs.
Amazon employed 1.55 million people globally as of the end of last year.
A major U.S. bank, with over $2.6 billion in assets, just raised its minimum wage.
Bank of America announced on Wednesday that it would raise its minimum pay for its full- and part-time U.S. hourly workers to $25 an hour. The change will take effect next month, pushing the minimum salary for full-time U.S. employees to over $50,000 annually.
This pay increase is the final phase of a plan announced in 2017 to boost the bank’s base pay from $15 an hour to $25 an hour by 2025. (Employees have been making $24 an hour since October 2024.) With the raise to $25 an hour, the starting salary for full-time U.S. workers will have increased by more than $20,000 since 2017.
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