• Bank of America will increase its U.S. minimum hourly wage to $24 in October 2024, reaching $25 by 2025.
  • The move pushes the bank's minimum starting salary for full-time employees to over $50,000 annually.
  • CEO Brian Moynihan positions the increase as a strategic investment in talent retention amid a competitive labor market.

Bank of America is accelerating its minimum wage roadmap, announcing a raise to $24 per hour effective this October, with a firm commitment to hit $25 by 2025. The increase solidifies the bank's position as a pay leader among large financial institutions and will push its minimum starting salary for full-time employees above the $50,000 threshold.

The move, confirmed by people familiar with the bank's compensation plans, represents the latest step in a multi-year strategy that began over a decade ago. CEO Brian Moynihan has been a vocal proponent of the increases, framing them not merely as a cost but as a crucial investment in employee retention and morale. In a tight labor market where turnover remains a significant expense, the bank has reported lower attrition rates directly linked to its compensation policies.

This latest hike continues a steady climb from $11.30 in 2010, with notable jumps to $15 in 2017, $20 in 2020, and $23 last year. The bank's minimum now stands at more than triple the stagnant federal minimum wage of $7.25, which hasn't changed since 2009. While many states have set higher rates, BofA's new floor exceeds all of them.

The policy also extends beyond direct employees. The bank requires its U.S.-based vendors and service providers to pay their employees assigned to BofA work at least $15 per hour, influencing wage standards along its supply chain. Efforts to reach bank spokespeople for additional comment on the implementation timeline were not immediately successful Thursday afternoon.

Bank of America's wage strategy is closely watched on Wall Street, where its scale and profitability make such commitments sustainable. The bank has indicated it will maintain the $25 target even in the event of an economic downturn, signaling a long-term shift in its approach to compensation. Analysts suggest the move could pressure other large banks to re-evaluate their own pay scales to remain competitive for talent.