Bank of America announced that starting in October, it will raise the minimum wage for its bank tellers and other hourly employees to $24 per hour, up from the current rate of $23. This move will impact thousands of the company’s 212,000 employees, particularly those in customer-facing roles such as tellers and call center workers.
Bank of America Raises Hourly Pay to $24 https://t.co/OYWMkMGOc2
— COINTURK FINANCE (@cointurkfinance) September 10, 2024
The wage increase is part of Bank of America’s ongoing efforts to improve compensation for its hourly workforce, following a trend in recent years among major banks to raise starting pay. This initiative aims to address the challenges of attracting workers to roles that are less remote-friendly and sometimes less glamorous compared to other opportunities in the job market. According to the U.S. Bureau of Labor Statistics, banks will need to fill around 27,000 teller positions annually over the next decade, highlighting the importance of competitive pay in retaining talent.
Bank of America has been steadily increasing wages for its hourly workers since 2019, when it paid $15 per hour. The company has previously stated its intention to raise the minimum wage to $25 per hour by 2025. Even at the current $24 per hour, Bank of America’s wages are significantly above the national median for bank tellers, which stood at $18.10 per hour in 2023.
Bank of America raises minimum wage to $24, even as workforce shrinks – FORTUNE https://t.co/dQavLqIazf
— Method8inc.com/ (@Method8Corp) September 10, 2024
This latest wage hike reflects the bank’s commitment to supporting its retail workers, yet it also highlights the income gap between hourly employees and higher-paid professionals within the financial industry. While customer-facing staff benefit from increased wages, high-level employees, including executives, receive far larger compensation packages. For example, in 2023, the median salary of a Bank of America employee was $124,000, whereas CEO Brian Moynihan earned 230 times that amount, with his compensation package valued at $29 million.
Key Points:
i. Bank of America will raise its minimum wage for hourly employees to $24 per hour starting in October, affecting thousands of customer-facing workers.
ii. The wage increase is part of a long-term plan, with the bank aiming to pay all hourly workers $25 per hour by 2025.
iii. This pay hike comes as banks face challenges in attracting workers to teller and other non-remote roles, with an estimated 27,000 positions needing to be filled annually over the next decade.
iv. The new wage is well above the national median for bank tellers, which was $18.10 per hour in 2023.
v. The increase also highlights the significant income gap between retail employees and top executives, with Bank of America’s CEO earning 230 times the median employee salary in 2023.
Lap Fu Ip – Reprinted with permission of Whatfinger News