Bank of America raises minimum hourly salary to $24 per hour.
Bank of America has announced plans to raise its minimum hourly wage for U.S. employees to $25 per hour by 2025[2][4]. This move comes after the bank successfully achieved its previous goal of paying $20 per hour to its lowest-earning full-time employees a year earlier than planned[1].
The bank's current minimum wage stands at $20 per hour, a significant increase from its minimum wage of $15 in 2017[5]. In October 2021, the minimum hourly wage was raised to $21 per hour[1].
Sheri Bronstein, the bank's chief human resources officer, emphasised the importance of providing a competitive minimum wage in order to be a great place to work[3].
The bank's wage increase is part of a broader trend in the industry, although the exact number of disruptors and the specific methods they are using to disrupt the banking sector remain unclear[6]. It is also not known how Bank of America's wage increase fits into the broader context of fintech disruption in the banking industry.
In addition to wage increases, Bank of America has a history of offering other perks to its rank and file[7]. In January, the bank offered restricted stock bonuses worth a collective $800 million to roughly 97% of its staff[7]. Workers making $100,000 or less have been included in these bonuses for the past three years[8].
The impact of fintech disruption on Bank of America is not discussed in the available information. However, it is important to note that there are various opinions on disrupting the banking industry[9].
If Bank of America hits its $25-per-hour goal next year, its minimum hourly wage will have climbed more than 121% since 2010[5]. With the move to $24 per hour, the bank's lowest annual salaries would be boosted to about $50,000[5].
The bank's long-term goals or strategies in response to fintech disruption are not mentioned in the available information.
References:
- Bank of America Raises Minimum Hourly Wage to $21 an Hour
- Bank of America to Raise Minimum Wage to $25 an Hour by 2025
- Bank of America's Sheri Bronstein on Why Paying a Competitive Minimum Wage is Essential
- Bank of America to Raise Minimum Wage to $25 an Hour by 2025
- Bank of America's Minimum Wage Climbs to $22 an Hour
- Disruptors in the Banking Industry: A Closer Look
- Bank of America Offers Restricted Stock Bonuses to 97% of Staff
- Bank of America's Employee Perks: Beyond the Minimum Wage
- Opinions on Disrupting the Banking Industry: A Debate
Bank of America's current minimum wage of $20 per hour is a significant stride in personal-finance, considering it was $15 in 2017. Moving forward, the bank plans to raise its minimum wage to $25 per hour by 2025, a change that will positively impact business operations and employee satisfaction.
