Bank of America will increase hourly minimum wage to $25 by 2025 for its American employees, according to CNN Business. The bank aims to maintain “a great standard of living” for its employees in the move.
BofA says paying its employees higher builds a “career mindset” which increases loyalty.
The bank raised its minimum wage in 2017 to $15 an hour and increased it again to $20 after two years for over 200,000 workers.
BofA will also require suppliers and vendors to pay their workers a minimum of $15 an hour.
BofA has been leading other banks in increasing minimum wage with JPMorgan also raising the pay from $15 an hour to $18 for 22,000 workers in 2018.
Bank of America’s move reflects calls by President Joe Biden to uplift the hourly minimum wage to $15 at the federal level.
In April, Biden approved raising the hourly minimum wage for federal contract employees from $10.95 to $15 in early 2022.
Bank of American stock is currently declining. BAC: NYSE is down 0.27%
