Bank Of America declared that it will take the further step of setting a minimum wage of $25 per hour, effective Jan. 1, 2025. The company’s U.S. employees are currently paid an average of $15 per hour.
The new minimum hourly wage will apply to all employees employed in the U.S. and not represented by a union.
The company will continue to pay non-management and administrative employees represented by a union on the current collective bargaining agreements that set minimum wage rates above $15 per hour.
Bank of America said it had spent more than $20 billion over the last few years on employee-related expenses and more than $40 billion since 2010 as part of its commitment to investing in its workforce as it repositions the company for long-term growth.
“We believe our performance, including our recent financial results, demonstrates the strength of the team and business model,” said Brian Moynihan, CEO at Bank of America.
Bank of America said it had created nearly three million U.S. job opportunities since 2010, including more than 1.7 million jobs in the last two years alone.
The company said it will use its success stories to encourage others to increase their minimum wage to $25 by 2025.
“We will harness the stories of our employees who have made such a difference as we work to realize our mission, accelerate our growth and drive value for all stakeholders,” said Moynihan.
“This commitment to our teammates is also a reflection of what we do as a company. Our employees are the heart and soul of the company, and we want to provide them with opportunities to grow and succeed as they help us build a stronger BofA for generations to come.
Bank of America said it had spent more than $20 billion over the last several years on employee-related expenses, including providing select teammates with profit-sharing and other financial rewards. It has spent more than $40 billion since 2010 on these initiatives.
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