Bank of America announced this week that it will lift its U.S. minimum hourly wage to $25 starting in early October, completing a pledge made in 2021 to reach that level by 2025. The change means that full-time employees in hourly roles will now earn more than $50,000 annually, a substantial increase from where pay stood less than a decade ago.
The move reflects a steady climb in Bank of America’s base pay. In 2017, the company’s minimum hourly wage was below $15. By 2019, it had risen to $20. It then increased gradually, reaching $24 last year. With the new adjustment to $25, entry-level pay has grown by more than $20,000 per year since the initiative began.
Sheri Bronstein, Bank of America’s Chief People Officer, described the increase as part of a broader commitment to offering employees a foundation for long-term careers. “Our strong and rising minimum starting salary provides opportunities for our teammates to build a long-term career at Bank of America,” she said, emphasizing that competitive pay is one way the company supports economic growth in the communities it serves.
The bank’s leadership has argued that raising wages is not only about compensation but also about creating a workplace where employees can access training, advancement, and family support. The company’s “Academy” program, for example, provides onboarding, education, and professional development resources. Employees also benefit from 26 weeks of parental leave, a sabbatical program, backup childcare and eldercare options, and comprehensive health coverage that includes wellness visits and virtual care.
In addition to salary and benefits, Bank of America distributes stock awards to a wide range of employees. Since 2017, the company has awarded nearly $5.8 billion in restricted stock to 97 percent of its workforce. These awards supplement regular pay and provide employees with a stake in the company’s long-term performance.
The timing of the increase comes during a challenging labor market in the United States. Recent government data has shown weaker job growth and higher unemployment rates, creating uncertainty for households, especially those with lower incomes. A survey from the Bank of America Institute found that lower-income households saw after-tax wages rise in August at the slowest pace since 2016.
The company has also announced plans to expand its workforce by targeting specific groups. Over the next five years, Bank of America aims to hire 10,000 individuals with military backgrounds and another 8,000 from community colleges. In addition, it intends to add 700 financial center roles in emerging markets across the country.
Bank of America’s decision continues to draw attention across the industry. The bank has consistently been recognized in rankings such as LinkedIn’s Top Companies list, Fortune’s 100 Best Companies to Work For, and People Magazine’s 100 Companies That Care. While those accolades reflect outside evaluations, the company points to its compensation and benefits as reasons why employees choose to stay and grow within the organization.
As one of the largest financial institutions in the country, Bank of America serves nearly 69 million consumer and small business clients. With more than 3,700 financial centers, 15,000 ATMs, and 59 million verified digital users, the company remains a dominant presence in U.S. banking. Its decision to raise base pay to $25 an hour is intended not only to meet a promise but also to reinforce its image as an employer that invests in its workforce.
Image is licensed under the Creative Commons Attribution 2.0 Generic license and was created by Jim Porter.
