Bank of America (NYSE: BAC) is raising the minimum wage for employees this year and plans to hike it to $20 an hour in two years.
"We are raising our minimum wage because we believe that to best serve our customers and clients, we need the best teams," BAC Chief Human Resources Officer Sheri Bronstein. "Saying thank you, celebrating great work, and sharing our success further demonstrate our commitment to being a great place to work."
Bank of America says it is committed to supporting a competitive minimum rate of pay. The company has been an industry leader in establishing an internal minimum rate of pay for its U.S. hourly employees and has made regular increases over many years.
Since 2010, Bank of America’s minimum wage has increased by more than $4 per hour – two years ago, the company raised it to $15 per hour, and the minimum wage is higher today. The average rate for all U.S. hourly employees is significantly above this level.
Effective on May 1, the minimum wage will be raised to $17 and will go higher in increments for the next two years, the company said in a statement.
Bank of America's move is a step further than what other banks have disclosed for what are typically branch tellers and other entry-level positions.
In early 2018, J.P. Morgan Chase said it would use some of the windfall from the U.S. corporate tax overhaul to raise hourly minimum wages to $15 to $18, from $12 to $16.50, depending on location.
Bank of America is the second biggest U.S. lender by assets, after J.P. Morgan Chase, and employs 205,000 people.
Shares began Tuesday collapsed 38 cents, or 1.3%, to $28.79.
