Bank of America raises its minimum wage to $22 per hour

Photo | Grant Welker Bank of America's branch on Park Avenue in Worcester

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By Alexander MacDougall

Bank of America announced on Monday it is raising its minimum hourly wage to $22 an hour, a move likely to affect the rate of pay at other financial firms in Massachusetts and across the state.

The company, which is headquartered in Charlotte, employs about 200,000 worldwide, with 30 branches located in Central Massachusetts. The raise is an additional dollar increase from its minimum wage, which was set in October. The new wage is effective immediately and will benefit tellers, customer service representatives, and other workers at the company.

Bank of America is the largest bank in Central Massachusetts, with $7 billion in local deposits, according to the Federal Deposit Insurance Corp. The next closest bank has $4 billion in local deposits, which is TD Bank, headquartered in New Jersey.

“Our focus on being a great place to work is core to everything we do and underscores the role

our teammates play in our success,” said Sheri Bronstein, chief human resources officer at Bank of America, in a press release statement. “We continue to invest in our teammates and their priorities through competitive pay; industry-leading benefits and resources for physical, emotional and financial wellbeing.”

The announcement comes in the midst of rising inflation and cost-living-levels in Massachusetts reaching record highs. The state's minimum wage is $14.25 an hour and will rise to $15 on Jan. 1. The move by Bank of America is likely to put pressure on other financial firms in the state to raise their own wages, as they compete for workers in a tight labor market.

The raise is part of Bank of America’s larger plan to raise its minimum wage to $25 an hour by 2025.