Bank of America's $25/hour minimum wage jump flexes on everyone else
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A Bank of America branch in New York City. Photo: Gabby Jones/Bloomberg via Getty Images.
Bank of America said Wednesday that it raised its U.S. minimum hourly wage to $25 an hour, making the starting salary for full-time employees more than $50,000 a year while committing to doubling its hires for community college graduates.
Why it matters: The move is in contrast to the labor market data indicating weaker wage growth and fewer jobs for young people.
By the numbers: The bank's minimum wage has climbed from under $15 in 2017 to $25 today.
- That's a jump of more than $20,000 in annual starting pay over that period.
- About 97% of BofA employees have received stock awards beyond base pay, with nearly $5.8 billion granted since 2017.
- The bank is committed to hiring 10,000 people with military backgrounds and 8,000 new hires from community colleges over the next five years.
What they're saying: The bank is looking for "long-term, career minded talent," said Josh Bronstein, Bank of America's head of global talent.
- That kind of hiring model "is really going to continue to be important as we think about the workforce impacts of AI," he said.
Zoom out: Average hourly earnings for all U.S. employees on private nonfarm payrolls rose to $36.53 in August 2025, according to the Bureau of Labor Statistics.
Yes, but: What's good for consumers and the economy isn't always what's good for shareholders.
- If a company announce layoffs, for example, stocks can sometimes rally, as it's a sign that the firm may be saving money and protecting profits.
- Part of the promise of AI is just that: it can "increase productivity," which can be code for job cuts.
- BofA is doing the opposite by adding to its workforce.
Zoom in: Turnover at BofA has dropped nearly in half from where it was a decade ago to about 8%.
- Bronstein argues that's more important for shareholder value creation and growth.
The big picture: BofA has also bulked up benefits, offering 26 weeks of parental leave (16 fully paid), a sabbatical program, backup child and adult care among other things.
What we're watching: The other big banks on Wall Street.
