Bank of America’s minimum hourly pay will become $23 once the North Carolina-based company’s planned increase happens.
The bank revealed Wednesday that it would do the $1 hike, with the increase slated to apply to U.S. employees beginning in October. Its minimum hourly wage has been $22 since May of last year, according to the company.
With the new $23-per-hour level, it will make the minimum annualized salary of those with full-time positions nearly $48,000, according to Bank of America.
In a statement, Chief Human Resource Officer Sheri Bronstein described having a "competitive minimum rate of pay" as "foundation" to "being a great place to work."
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"By investing in a variety of benefits to attract and develop talented teammates, we are investing in the long-term success of our employees, customers and communities," she said. "Our commitment to $25 by 2025 is how we share success with you and lead the way for other companies."
Two years ago, Bank of America first unveiled its plans to hit $25 for its minimum hourly rate no later than halfway through the decade.
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Prior to the hike announced Wednesday, Bank of America workers had seen at least five bumps in the company’s minimum hourly rate since 2017, according to the company. Once the $23 comes into force, it will have risen 53%, or $8, compared to then.
Bank of America’s new per-hour minimum wage will be $15.75 higher than the $7.25 per hour required by federal law for non-tipped workers. The federal minimum wage has remained flat since 2009.
The company employed some 216,000 total workers at the end of June, according to its latest quarterly earnings report.
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As of early Wednesday afternoon, Bank of America’s stock has experienced a drop of over 13% from where it started the year. Over the past 12 months, its value has come in 15% lower.
