Bank of America has announced an increase in its minimum hourly wage across the United States to $25, a move that delivers on a commitment made in 2021 and marks the culmination of a multi-year strategy to boost pay for its lowest-earning employees.

The new rate, which takes effect in early October, will see the minimum annual salary for full-time staff rise to more than $50,000.

The bank’s latest pay rise is the final step in a series of increases that began in 2017, when the minimum wage stood at under $15 per hour. Over the past eight years, Bank of America has raised its base pay by more than $20,000, positioning itself as a leader in compensation among major US financial institutions. The company said the increase applies to all full-time and part-time hourly roles, affecting thousands of employees nationwide.

Sheri Bronstein, chief people officer at Bank of America, described the move as part of a broader effort to support long-term career development and economic opportunity. “Our strong and rising minimum starting salary provides opportunities for our teammates to build a long-term career at Bank of America,” Bronstein said. “Competitive compensation is one of the many ways we are helping to drive American economic growth and opportunity”.

The company has also highlighted its investment in employee benefits and incentives. Since 2017, 97 per cent of Bank of America employees have received awards beyond regular pay, with nearly $5.8 billion distributed, mostly in the form of restricted common stock. The bank’s benefits package includes 26 weeks of parental leave, backup childcare, and a range of wellness programmes.

Bank of America’s leadership said the wage increase is intended to help employees weather economic uncertainty and support the communities the company serves. The move comes at a time when the US labour market is facing challenges, with slow job growth and rising unemployment.

The bank’s approach has drawn recognition from external organisations, including LinkedIn and Fortune, for its workplace culture and employee support initiatives.

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