By Caroline Hudson
October 6, 2021
The following is an excerpt from the original Baltimore Business Journal article.
Employees of the biggest bank in Greater Baltimore are getting more money in their pockets.
Bank of America Corp. (NYSE: BAC) has increased its minimum wage to $21 per hour — marking another step toward the bank’s plan for a $25-per-hour minimum wage by 2025.
The Charlotte, North Carolina-based financial giant is the dominant bank in Greater Baltimore with $30.96 billion in local deposits as of June 30, according to the Federal Deposit Insurance Corp. Bank of America also has 74 branches in the region.
CEO Brian Moynihan announced BofA’s $25-per-hour goal in May. It is also requiring U.S. vendors to pay their employees working for the bank at least $15 per hour. The decision this spring increased the bank’s minimum wage from $20 per hour, a threshold BofA met a year earlier than expected. BofA had pledged in early 2019 to reach $20 per hour by 2021. Soon after, it hiked minimum wages from $15 per hour (set in 2017) to $17 per hour.
By 2025, BofA will have raised its minimum wage by almost $14 per hour since 2010.
The bank’s wage is significantly higher than the statewide minimum in Maryland. The minimum wage in Maryland rose to $11.75, as of Jan. 1, for employers with 15 or more employees. The minimum wage for employers with fewer than 14 employees is $11.60 per hour.
BofA estimates, with the new wage, an employee’s annualized salary comes to $43,680. The hike is expected to affect tens of thousands of employees. It employed about 211,600 people as of June 30. BofA did not disclose the investment cost in raising wages.
Source: The Baltimore Business Journal
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