Bank raising minimum wage to $20 an hour in 2020

minimum wage

BY DANIELLE CHEMTOB
THE CHARLOTTE OBSERVER/TNS

CHARLOTTE, N.C. – Bank of America will raise its minimum wage from $17 to $20 an hour early next year, more than a year sooner than previously announced. 

The bank said Monday the new minimum wage, first announced this spring, will now go into effect by the end of the first quarter in 2020. It was scheduled to increase to $20 by 2021. 

The bank, which has about 16,000 workers in Charlotte, said the decision to move up the timeline for the increase is part of its commitment to be a great place to work through offering “leading” benefits, including pay. 

In May, the company raised the minimum wage to $17 an hour. 

Increase for thousands 

The wage for the bank’s lowest-paid workers has increased by more than $8 an hour since 2010, Bank of America said in a release. The move impacts thousands of the bank’s 208,000 employees. 

CEO Brian Moynihan previously told CNBC that the increase to $20 would mean that employees starting with the bank would earn a minimum of $41,000 a year. 

The announcement comes a week after the financial institution said it would give a one-time bonus to 95% of its employees. It’s the third year in a row the bank has given the bonuses, either in the form of cash or restricted stock units. 

Employers nationally have been under pressure to raise compensation for the lowestpaid workers as the cost of housing and other expenses have outpaced wage increases. 

In North Carolina, the minimum wage is $7.25 per hour, the same as the federal minimum wage. 

According to the MIT Living Wage Calculator, a single person in Mecklenburg County would need to earn $12.58 an hour to make ends meet, and an adult with one child would need to make $24.69.

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