Bank of America to Raise U.S. Minimum Hourly Wage to $25 by 2025 -- Update
By Colin Kellaher and Ben Eisen
Bank of America Corp. on Tuesday said it plans to raise its
hourly minimum wage to $25 by 2025, putting it on track to surpass
its big-bank peers during a time of worker shortages across the
The Charlotte, N.C., banking giant also said it is requiring all
of its U.S. vendors to pay employees who are dedicated to the bank
at least $15 an hour.
The second-largest U.S. lender joins companies including
Amazon.com Inc. and McDonald's Corp. in saying it will raise pay to
attract workers as the economy reopens more fully. Average hourly
earnings for private-sector employees rose by 21 cents to $30.17
last month, according to a recent Labor Department report.
JPMorgan Chase & Co., the largest U.S. lender, in January
raised its minimum hourly base pay to between $16 and $20,
depending on the local cost of living. Wells Fargo & Co. last
year raised its pay to between $15 and $20 an hour, also depending
on geography. And Citigroup Inc. raised its base pay to $15 an hour
in 2019, though a spokeswoman said its average for hourly U.S.
workers is $23.89.
In March 2020, Bank of America raised its minimum hourly wage to
$20, a year ahead of plan, after boosting it to $17 an hour in
2019. The bank said it has more than doubled its minimum hourly pay
President Biden campaigned on a pledge to raise the federal
minimum wage to $15 an hour, but a February push by Democrats to
include the increase in the $1.9 trillion Covid-19 relief package
Mr. Biden in late April signed an executive order requiring that
federal contractors pay a $15-an-hour minimum wage.
Write to Colin Kellaher at email@example.com and Ben Eisen
(END) Dow Jones Newswires
May 18, 2021 12:49 ET (16:49 GMT)
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