In the wake of the recent labor squeeze rocking numerous U.S. industries, a bevy of major corporations have announced wage increases to lure in new employees. Now, Bank of America is set to exceed its peers by raising the minimum wage for its employees to $25 an hour by 2025.
The bank, which has 174,666 employees in the US, said the raises are expected to impact 50,000 employees who work in jobs such as those in consumer bank, technology, operations, and staff support functions as well as other areas. The bank also said it is requiring all its US vendors to pay their 43,000 employees “dedicated to the bank” at least $15 an hour, according to the press release.
Last March, Bank of America raised its minimum hourly wage to $20, a year ahead of plan and more than double the US federal minimum wage. In 2010, the bank’s minimum wage was $11.30 per hour.
Labor advocates have seen a surge of support in their push for a $15/hr wage and several banks, such as Wells Fargo, have responded by meeting that challenge. Bank of America’s new minimum wage is $5-$10 beyond what many of their competitors have offered so far, shaking up the compensation field even more.
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