Bank of America raises hourly wage as inflation grips the United States

Bank of America raises hourly wage as inflation grips the United States
Bank of America Corporation has announced that it would raise its minimum wage in the United States to USD 22.50 an hour by the year 2025. The employees of this multinational finance major will now be able to earn a minimum salary of over USD 45,400 per year.

Since 2017, the second-largest U.S. bank by assets has been gradually raising its minimum hourly wage. It started with a minimum wage of USD 15 in 2017 which is then raised to USD 17 in 2019 and subsequently to USD 20 in 2020.

Notably, it is among the most progressive banks when it comes to employee compensation. Last year, the bank pledged to pay its employees at least USD 25 an hour by 2025 and required its vendors to set a minimum wage of USD 15.

The latest round of pay hikes comes as inflation in the U.S continues to rise, with the Consumer Price Index hitting its highest level in over 40 years.

Additionally, due to the elevated number of unfilled positions, banks are having a hard time finding new employees. They are also putting a high priority on retaining their existing staff members.

According to Sheri Bronstein, the Bank of America’s Chief Human Resources Officer, the company’s pay and benefits are part of its efforts to retain and attract the best talent. He added that the banks culture is built on the idea that employees play a vital role in its success.

In addition, the bank also said it would continue to invest in its employees well-being by providing them with a variety of perks and benefits. These include a long-term career development program, as well as physical and financial security.

In the same context, the bank gave out around 97% of its special compensation awards in the form of restricted stock units back in January.

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