Bank of America will raise its minimum pay to $20 an hour for its more than 205,000 employees nationwide.
The company will implement the new minimum wage over the next two years, according to comments made by Bank of America CEO Brian Moynihan on MSNBC earlier Tuesday.
“If you get a job at Bank of America, you’ll make $41,000” a year,” Moynihan said. “With the success our company has … we have to share that success with our teammates.”
Bank of America employees will receive an immediate raise to $17 per hour starting on May 1. Their wages will then climb incrementally through 2021.
The company was among the first to start a $15 per hour minimum wage.
Raising minimum salaries has been a widespread trend by other financial entities in recent months. JP Morgan Chase hiked wages from $15 to $18 per hour for its 22,000 employees depending on the local cost of living. They committed to an $18 per hour salary for all employees in Washington starting last November.
US employers are competing in an extremely tight labor market where fewer people are struggling to find jobs. Wages are rising and the unemployment rate stood a 3.8 percent year-over-year.