- Bank of America raised its US minimum hourly wage from $20 to $21 on Wednesday.
- It follows the bank’s pledge in May to hike minimum wage to $25 by 2025.
- In the last four years, the bank’s minimum pay has risen from $15 to $21.
Bank of America announced on Wednesday it raised its US minimum hourly wage from $20 to $21 following its pledge to increase worker’s pay to no less than $25 an hour in the next four years.
It joins a clutch of firms that have pledged to pay employees more after a year of pandemic risks and government subsidies fueled conversations on whether companies pay their workers enough.
In May, Bank of America disclosed plans to hike its minimum wages for its US employees to $25 by 2025.
The $25 figure is higher than at competitors, and the second-largest US bank has also asked its vendors to set a minimum wage of $15 an hour.
Bank of America has raised the minimum hourly wage to $21 from $15 in the last four years.
Companies have sometimes been prodded to boost wages by employee complaints that spill into the public sphere. But there are also political pressures and a competitive reality in which one big company outlines a higher pay scale and others follow suit.
Walmart Corp, Starbucks Corp, Amazon, and CVS Health have raised or are planning to hike wages.
The current minimum wage at the federal level is $7.25 per hour, enacted more than a decade ago.