The second largest US bank boosts employee income

In keeping with its 2021 pledge, Bank of America announced Wednesday that it has increased its minimum hourly wage nationwide to $25 per hour.

The second-largest U.S. bank has increased its minimum hourly wage by almost 67% since 2018, most recently paying a minimum wage of $24 per hour. With this most recent increase, the annualized minimum wage for full-time BofA employees in the United States will surpass $50,000, the bank stated.

As firms postpone hiring because of economic uncertainty, the move comes at a difficult moment for the U.S. labor market, where poor job gains and growing unemployment pose threats to consumer spending.

Low-income households were disproportionately affected by the weak labor market, according to a Bank of America Institute poll, with their after-tax incomes and salaries growing in August at the weakest rate since 2016.

According to Sheri Bronstein, chief people officer at BofA, the increased starting salary aids workers in establishing long-term careers with the corporation.

All full-time and part-time hourly jobs in the United States will be affected by the rise, which will go into effect in early October.