Bank of America will increase its minimum wage to $23 an hour

The company wants its minimum wage to hit $25 by 2025

Bank of America’s minimum hourly pay will become $23 once the North Carolina-based company’s planned increase happens. 

The bank revealed Wednesday that it would do the $1 hike, with the increase slated to apply to U.S. employees beginning in October. Its minimum hourly wage has been $22 since May of last year, according to the company. 

With the new $23-per-hour level, it will make the minimum annualized salary of those with full-time positions nearly $48,000, according to Bank of America. 

Bank of America

A Bank of America branch stands in Manhattan on March 15, 2023, in New York City. As concerns grow among clients of smaller banks following the Silicon Valley Bank collapse, Bank of America has seen an inflow of over $15 billion worth of deposits. Ot (Spencer Platt/Getty Images / Getty Images)

In a statement, Chief Human Resource Officer Sheri Bronstein described having a "competitive minimum rate of pay" as "foundation" to "being a great place to work."

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"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," she said. "Our commitment to $25 by 2025 is how we share success with you and lead the way for other companies."

Bank of America logo

The Bank of America logo outside a branch in Washington, D.C. (ALASTAIR PIKE/AFP via Getty Images / Getty Images)

Two years ago, Bank of America first unveiled its plans to hit $25 for its minimum hourly rate no later than halfway through the decade.  

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Prior to the hike announced Wednesday, Bank of America workers had seen at least five bumps in the company’s minimum hourly rate since 2017, according to the company. Once the $23 comes into force, it will have risen 53%, or $8, compared to then.

Ticker Security Last Change Change %
BAC BANK OF AMERICA CORP. 33.61 -0.09 -0.27%

Bank of America’s new per-hour minimum wage will be $15.75 higher than the $7.25 per hour required by federal law for non-tipped workers. The federal minimum wage has remained flat since 2009.

ATM customer at Bank of America

A customer uses an ATM at a Bank of America branch in Boston, Massachusetts, October 11, 2017. REUTERS/Brian Snyder/File Photo (REUTERS/Brian Snyder/File Photo / Reuters Photos)

The company employed some 216,000 total workers at the end of June, according to its latest quarterly earnings report. 

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As of early Wednesday afternoon, Bank of America’s stock has experienced a drop of over 13% from where it started the year. Over the past 12 months, its value has come in 15% lower.

Bank of America Corp