Money in the bank, Bank of America (NYSE: BAC) raises minimum

Bank of America (NYSE: BAC) has raised its minimum hourly wage to $25 across the United States, fulfilling a pledge made in 2021 to reach this threshold.

The second-largest U.S. bank has increased its minimum hourly pay by nearly 67% since 2018. Prior to this announcement, the company was paying a minimum wage of $24 per hour.

With this latest increase, the minimum annualized salary for full-time Bank of America employees in the United States will exceed $50,000, according to the bank.

The wage hike comes amid challenges in the U.S. labor market, characterized by small job gains and rising unemployment, which pose risks to consumer spending as companies reduce hiring due to economic uncertainty.

A Bank of America Institute survey revealed that lower-income households are feeling the greatest impact from labor market weakness, with their after-tax wages and salaries increasing in August at the slowest pace since 2016.

Sheri Bronstein, Bank of America’s chief people officer, said the higher starting salary supports employees in developing long-term careers at the company.