Bank of America will raise its minimum hourly wage to $25 by 2025, CEO Brian Moynihan said on CNN Tuesday morning.
The raise will cost the Charlotte-based bank “a few hundred million dollars a year,” Moynihan said, calling the wage raise “an investment in our teammates.”
Bank of America also announced it would require all of its U.S. vendors to pay bank-related employees at least $15 per hour. More than 99% of the bank’s vendors are paying that rate to employees now, Moynihan said.
Moynihan said the raise will affect thousands of employees, especially as the bank continues to bring on new workers. The bank expects to hire 2,000 “kids from school” this year, Moynihan said, along with around 2,000 interns and between 15 and 20,000 new employees.
Other minimum wage raises at Bank of America
The bank had previously raised its minimum wage to $20 last year, a year earlier than previously announced. The decision to move that schedule forward was in part in reaction to the pandemic, Moynihan said on CNN.
And in 2019, the bank had raised the minimum wage to $17.
Bank of America still outpaces peer Wells Fargo in minimum wage. Last year, Wells Fargo announced it would raise its minimum wage in most U.S. markets, corresponding to the cost-of-living in each market.
Wells Fargo employees in New York and San Francisco saw a raise to $20 an hour, while Charlotte employees were moved to $16 an hour.
This is a developing story. Check back for updates.