Bank of America says it will boost minimum wage to $25 an hour by 2025

Brian Moynihan, CEO of Bank of America

Scott Mlyn | CNBC

Bank of America announced that it would increase the minimum hourly wage it pays its employees to $ 25 by 2025.

The company, which made the announcement in a press release on Tuesday, had just finalized a plan last year to hit a minimum wage of $ 20. The second largest U.S. bank by assets after JPMorgan Chase also said sellers would be required to pay workers at least $ 15 an hour.

Bank of America, headed by CEO Brian Moynihan since 2010, has helped boost industry pay in recent years when it announced it was one of the first mega-banks to guarantee an hourly wage of $ 20 . That was in 2019 and achieved his goal a year ahead of schedule.

“A key principle of responsible growth is our commitment to being a great place to work, which means investing in the people who serve our customers,” said Sheri Bronstein, the company’s chief human resources officer. “This includes offering them and their families high wages and competitive advantages so that we can continue to attract and retain the best talent.”

Banks and other employers with large retail employees have received criticism of low wages in the past.

While executives and officers in Wall Street trading and advisory businesses often make millions of dollars a year, bank employees are paid far less. Around a third of bank employees received public support ranging from Medicaid to grocery stamps, according to a 2013 report by the Committee on Better Banks.

Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to start a free trial today.

Comments are closed.