Story at a glance
- Following research promoting a higher minimum wage, Bank of America now guarantees a $20 minimum wage and will step that up in the coming years.
- Other major corporations that pay above the federal minimum wage include Costco, Walmart and Target.
- The Raise the Wage Act of 2021 was introduced in Congress in January 2021.
On Tuesday, Bank of America announced that it will increase its hourly minimum wage to $25 by 2025, lifting it further from $20 per hour it established in March 2020.
In addition, all Bank of America vendors are required to now pay their employees at least $15 per hour.
Researchers have argued that a higher minimum wage can lift millions of workers out of poverty.
“A core tenet of responsible growth is our commitment to being a great place to work which means investing in the people who serve our clients,” said Sheri Bronstein, chief human resources officer at Bank of America. “That includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.”
The financial institution has consistently increased its minimum wage since 2010.
It now joins the ranks of other large corporations that pay their employees above the federal minimum wage of $7.25 per hour, including Amazon, Costco and Target.
In Congress, the Raise the Wage Act of 2021 was introduced in the U.S. Senate by Vermont Sen. Bernie Sanders (I) in January and most recently read before the Committee on Health, Education, Labor, and Pensions.