Bank of America to raise its minimum wage to $20 an hour

Bank of America

Bank of America

Bank of America is raising its starting pay to $20 an hour over a two-year period, starting with a hike next month.

Bank of America said it will raise its minimum wage from $15 an hour to $20 by 2021.

Since 2010, Bank of America has increased its minimum wage by more than $4 per hour. Workers are receiving the largest wage increases since the Great Recession as employers struggle to find enough people to fill their ranks.

"If you get a job at Bank of America, you'll make $41,000 per year", Chairman and CEO Brian Moynihan said during a television interview on MSNBC.

Bank of America Corp., based in Charlotte, N.C., has more than 205,000 workers. But economists would say that the real reason the bank is not that its executives have been suddenly overcome with feelings of generosity but because of market competition for employees at a time of very low unemployment.

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On May 1, the minimum hourly wage will rise by 2 dollars to 17 dollars, the bank said.

Wages at big banks began nudging up a few years ago as industry profits reached their highest levels since the financial crisis.

Bank of America declined further comment on the matter. Moynihan and the CEOs of JPMorgan Chase, Citigroup, Goldman Sachs and three other banks will appear in front of a House finance committee Wednesday in the most significant hearing on the banking industry since Democrats took control of the House earlier this year. JPMorgan Chase, the country's biggest bank, raised hourly pay rates for some employees to between $15 and $18, CEO Jamie Dimon said in his prepared statement for the hearing tomorrow.

The executives are expected to face tough questions from lawmakers about bank profits, regulatory issues, consumer protection and executive pay. Moynihan made $26.5 million in 2018, a 15 percent increase from the previous year and a record for the company. "The financial crisis was an incredibly hard period for our country and our firm", Goldman Sachs CEO David Solomon is scheduled to tell the committee, according to his prepared testimony.

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