"Bank of America announced on Wednesday that it would raise its minimum pay for its full- and part-time U.S. hourly workers to $25 an hour. The change will take effect next month, pushing the minimum salary for full-time U.S. employees to over $50,000 annually. This pay increase is the final phase of a plan announced in 2017 to boost the bank's base pay from $15 an hour to $25 an hour by 2025. (Employees have been making $24 an hour since October 2024.)"
""[The raise] gives a teammate a chance to join our company, spend their whole career here, and support their families," Bank of America CEO Brian Moynihan told Bloomberg. Moynihan emphasized that the higher minimum wage minimized turnover, causing the rate of departing employees to drop from 20% in 2017 to around 10% this year. Customer attrition, or a loss of customers, has also dropped, he stated."
Bank of America will raise its minimum pay for full- and part-time U.S. hourly workers to $25 an hour, effective next month, making full-time starting pay exceed $50,000 annually. The increase completes a plan begun in 2017 to raise base pay from $15 to $25 an hour by 2025; employees earned $24 an hour since October 2024. The starting salary for full-time U.S. workers has risen by more than $20,000 since 2017. The bank reports turnover fell from 20% in 2017 to about 10% and customer attrition also declined. The bank is adopting AI, reducing some roles, and aiming to reskill remaining employees. Bank of America had about 213,000 employees as of July. Amazon also announced raises, lifting average hourly pay to over $23 and investing more than $1 billion in wages and lower healthcare costs.
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