Bank of America announced on Tuesday it is raising hourly wages for its lowest-paid U.S. employees starting next month, with the figure rising to $20 in two years.
The Charlotte-based bank said its minimum wage will rise from slightly higher than $15 an hour to $17 an hour on May 1. The minimum will continue to rise until hitting $20 an hour in 2021, the bank said.
The company, which has about 15,000 workers in Charlotte, said the increase is part of its commitment to be a great place to work and offer competitive benefits. The company said it employs more than 205,000 people worldwide.
"We are raising our minimum wage because we believe that to best serve our customers and clients, we need the best teams," Sheri Bronstein, chief human resources officer, said in a statement.
CEO Brian Moynihan, speaking to MSNBC on Tuesday, said the increase means workers joining the bank will earn at least $41,000 a year. Bank of America has also frozen health care cost increases for lower-paid employees, Moynihan told MSNBC.
Tuesday's announcement marks the latest increase that Bank of America has made to the pay for its lowest-paid workers.
In 2016, Moynihan announced plans to raise minimum pay to $15 an hour. That change, which took effect in 2017, increased the figure from $13.50. Since 2010, Bank of America's minimum wage has increased by more than $4 per hour, the bank said on Tuesday.
Other big U.S. banks have also increased their minimum wages in recent years to compete with one another.
For instance, Wells Fargo, which is based in San Francisco but has its largest employment hub in Charlotte, raised its minimum base pay in the U.S. to $15 an hour last year, up from $13.50 previously. That move benefited approximately 36,000 employees, Wells has said.
