On Monday, Bank of America Corp announced that it was raising its minimum hourly salary in the United States to $22, bringing it closer to its goal of paying workers $25 an hour by 2025.
Since 2017, when it was $15, the second-largest US bank by assets has been progressively increasing its minimum hourly rate, and has been at the forefront of banks raising base pay for hourly workers.
Last year, the bank committed to paying its employees at least $25 an hour by 2025, the highest minimum wage of any major retail bank, and began mandating its vendors to pay a minimum wage of $15 an hour.
This newest wage raise comes as inflation in the United States lingers around a 40-year high, driving up prices for food, healthcare, and rent, which hit a new high in March.
There are also a record number of empty jobs, which implies banks are facing intense competition for new hires and are prioritizing retaining existing employees.
The bank’s raises and other incentives, according to Sheri Bronstein, chief human resources officer, are part of “our focus on being a wonderful place to work… so that we continue to recruit and retain the best personnel.”
Around 97 percent of the bank’s workers received special compensation awards in January, the majority of which were restricted stock units.
