A major U.S. bank, with over $2.6 billion<\/a> in assets, just raised its minimum wage.<\/p>\n Bank of America announced<\/a> on Wednesday that it would raise its minimum pay for its full- and part-time U.S. hourly workers to $25 an hour. The change will take effect next month, pushing the minimum salary for full-time U.S. employees to over $50,000 annually.<\/p>\n This pay increase is the final phase of a plan announced in 2017 to boost the bank’s base pay from $15 an hour to $25 an hour by 2025. (Employees have been making $24 an hour since October 2024.) With the raise to $25 an hour, the starting salary for full-time U.S. workers will have increased by more than $20,000 since 2017.<\/p>\n Related: <\/b>Bank of America Is Cracking Down on Overwork for Junior Bankers and Capping Hours to ‘Only’ 80 a Week. Here’s Why.<\/a><\/p>\n “[The raise] gives a teammate a chance to join our company, spend their whole career here, and support their families,” Bank of America CEO Brian Moynihan told Bloomberg<\/a>.<\/p>\n Moynihan emphasized that the higher minimum wage minimized turnover, causing the rate of departing employees to drop from 20% in 2017 to around 10% this year. Customer attrition<\/a>, or a loss of customers, has also dropped, he stated.<\/p>\n As Bank of America adopts new technologies like AI, it has reduced its number of employees across some departments, Moynihan told Bloomberg<\/i>. The goal is to put more dollars in the pockets of the employees who remain and “re-skilling them,” he said.<\/p>\n Bank of America had about 213,000 employees<\/a> as of July, according to its newsroom.<\/p>\n Related:<\/b> Here’s What’s Considered ‘Middle Income’ in the U.S. Today, According to Bank of America Data<\/a><\/p>\n Amazon also announced<\/a> this week that it would increase its average hourly pay to more than $23 per hour. The retail giant is investing more than $1 billion to increase wages and decrease the cost of healthcare plans for its employees.<\/p>\n Full-time employees will have their pay increase by an average of $1,600 per year.<\/p>\n Meanwhile, Amazon’s<\/a> entry-level healthcare plan will cost $5 per week and $5 for co-pays beginning next year. Amazon stated that the change is a 34% reduction in weekly contribution costs.<\/p>\n Amazon employed 1.55 million<\/a> people globally as of the end of last year.<\/p>\n Related:<\/b> Amazon Tells Thousands of Employees to Relocate or Resign<\/a><\/p>\n<\/div>\n A major U.S. bank, with over $2.6 billion<\/a> in assets, just raised its minimum wage.<\/p>\n![\"\"](\"https:\/\/assets.entrepreneur.com\/images\/misc\/1758227440_Brian-Moynihan-GettyImages-2235361019.jpg?width=1000\")
Bank of America CEO Brian Moynihan. Photographer: Betty Laura Zapata\/Bloomberg via Getty Images<\/sup><\/i><\/p>\nAmazon Is Raising Pay<\/h2>\n