Bank of America raises the minimum wage to $ 21 an hour; plans to reach $ 25 by 2025

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Bank of America announced on October 6 that it had officially increased the hourly wages of its employees to $ 21, the latest step in a plan to raise the base wage to $ 25 an hour by 2025.

The North Carolina-based company said it raised its minimum wage to $ 15 in 2017, $ 17 in 2019 and $ 20 in 2020. If it meets the deadline it self-imposed to reach $ 25 in over the next four years, she will have increased her minimum wage. nearly $ 14 since 2010.

“We are making large-scale investments to attract and develop talented teammates who serve our customers and local communities on a daily basis, and who can build long and successful careers with our company,” said Sheri Bronstein, Director of Human Resources at BofA, in a press release. “Today, we take another step forward by once again raising our minimum rate of pay for American employees, demonstrating our commitment to sharing our success with our teammates and inspiring others to do the same.”

With around $ 3 trillion in assets, BofA is one of the largest banks in the country. He is recovering in the Ohio market and recently announced a roster of regional market chairs for Buckeye State, highlighting his growing presence here.

It’s a relatively gradual move for the company at a time when many workers are fighting for a federal minimum wage of $ 15 – a level many employers are meeting or exceeding anyway in today’s tight labor market. ‘hui, even for historically low jobs in the hospitality industry. .

Of course, it’s a hot trend for banks right now.

As Banking Dive points out, BofA announced its pay rise a day after BMO Harris Bank (the U.S. division of Bank of Montreal) announced it would raise the minimum wage later this month for branch employees. and call centers from $ 15 an hour to $ 18.

Meanwhile, Pittsburgh-based PNC Bank, Northeast Ohio’s third-largest bank in deposit market share, said this summer it was also increasing its base salary by $ 15 an hour. at $ 18.

As for the other examples, Wells Fargo said in 2020 it would increase hourly ages to $ 20 an hour in the more expensive markets.

And JPMorgan Chase, Northeast Ohio’s fifth largest bank, said in 2019 it would raise the minimum wage to between $ 16.50 and $ 20 an hour.

For comparison, Cleveland’s KeyBank (which had around $ 181 billion in assets at the end of the second quarter and is between the 15th and 20th largest banks in the country) said its current minimum hourly wage is $ 15. However, in 2020, the bank increased base salaries for a variety of jobs, including those in technology and operations centers as well as branches, to a range of $ 16 to $ 18 an hour.

At $ 25 an hour, the base annual salary for a BofA employee in 2025 would be $ 52,000.

According to the companies’ annual statements, the average salary for employees (excluding CEOs) in 2020 was $ 67,571 at Key, $ 80,350 at PNC, $ 80,102 at Chase and $ 94,866 at BofA.

Therefore, the pay ratio between CEO and average employee salary at these companies in 2021 is 93: 1 at Key, 198: 1 at PNC, 395: 1 at Chase, and 274: 1 at BofA.

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