Bank of America Raises Hourly Minimum Wage to $22

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Bank of America (BOA) announced on the 23rd (local time) through major foreign media that it will raise its employees' minimum hourly wage to $22.

With the minimum hourly wage increase, full-time employees are expected to earn close to $46,000 annually.

According to the U.S. Census Bureau, the median annual income for all workers aged 15 and older in the U.S. was $41,535 in 2020. For full-time employees, the median income was $61,417 for men and $50,982 for women. The poverty threshold income was $11,371.

BOA, which employs 174,000 people in the U.S., has steadily raised its minimum wage. It increased to $15 in 2017, $17 in 2019, and $21 last year. BOA plans to raise the minimum wage to $25 by 2025. BOA explained that raising the minimum wage to $25 in 2025 would represent an increase of more than 121% since 2010.

Last year, BOA also requested its contractors to pay their employees a minimum wage of at least $15.

Foreign media commented that despite the ongoing difficulty in finding workers in the U.S., BOA is raising its minimum wage. They also added that large corporations are increasing wages to hire employees, which is contributing to inflation.

BOA stated that it will continue to invest in its employees to attract and retain the best talent.

JP Morgan Chase, the largest bank in the U.S., pays its employees a minimum wage ranging from $16.5 to $20 depending on the area of residence.