Bank of America Raises its Minimum Wage to $22 per hour

Bank of America is increasing the pay of its lowest-paid employees to $22 per hour, or approximately $46,000 per year for full-time staff. The Charlotte, North Carolina-based company’s pay raise boosts the wages of a substantial chunk of its 174,000 U.S. employees, and comes after a series of compensation increases that began with the bank raising its hourly base to $15 in 2017, $17 in 2019, and $21 in 2021. BofA previously stated that by 2025, it intends to progressively boost its base salary to $25 per hour.

According to the Census Bureau, the median earnings of all U.S. employees aged 15 and up in 2020 was $41,535. According to the government, full-time workers’ median salary was $61,417 for men and $50,982 for women, with the poverty line set at $13,171 for one person in 2020.

Bank of America move comes amid a tight labour market, which has prompted major corporations to raise wages to recruit workers, as well as rising prices. “We continue to invest in our teammates and their priorities through competitive pay; industry-leading benefits and resources for physical, emotional, and financial wellbeing; long-term career development tools and programs; and our diversity, equity, and inclusion efforts across the company,” Sheri Bronstein, the nation’s second-largest bank, said in a statement.

Amalgamated Bank was the first bank in the US to pay interns, mail room employees, and tellers a minimum wage of $15 per hour in 2015. The Amalgamated Clothing Workers of America, which formed the bank in New York City over a century ago, will raise the rate to $20 in 2019.