Bank of America Raises Minimum Wage to $23 an Hour

Bank of America announced Wednesday that it is raising its minimum wage to $23 per hour, in another step toward its target of $25 per hour by 2025.

The new hourly minimum raises the minimum full-time yearly salary to nearly $48,000, the company said in a statement. This is the latest in a string of hourly wage increases spanning the six years: It first raised it to $15 in 2017 and steadily raised the hourly rate to $22 last May.

By its target year of 2025, the bank will have raised its minimum hourly wage by $14, or more than 121%, since 2010, according to the bank. The $23 minimum takes effect in October.

“Providing a competitive minimum rate of pay is foundational to being a great place to work," Sheri Bronstein, chief human resources officer at Bank of America, said in the statement. "By investing in a variety of benefits to attract and develop talented teammates, we are investing in the long-term success of our employees, customers and communities.”

Bank of America, the second-largest bank in the U.S., has had a strong year, beating Wall Street estimates in its second-quarter earnings. Its revenue for the quarter ended June 30 totaled $25.2 billion, surpassing analysts' revenue expectations of $24.98 billion, according to estimates compiled by FactSet.

Chief Executive Officer Brian Moynihan called it “one of the strongest quarters and first-half, net income periods in the company’s history,” in a call with investors following the report. 

The bank manages more than $2.5 trillion in assets, and operates across consumer banking, global wealth and investment management, global banking and global markets.

In July, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency ordered the Bank of America to pay $250 million in restitution and penalties for illegally charging repeat fees, withholding credit card rewards and enrolling customers in “fake” accounts without their knowledge.