By Dhirendra Tripathi
Investing.com – Bank of America (NYSE:BAC) shares weakened Tuesday following its decision to raise minimum pay to $25 an hour by 2025, up from $20 now.
In addition, the bank said all its U.S. vendors are now required to pay their employees dedicated to the bank, at or above $15 per hour. It said already 99% of the company’s more than 2,000 U.S. vendor firms and 43,000 vendor employees are at or above the $15 per hour rate.
Bank of America is not the first to raise minimum wages. Many employers, including Amazon (NASDAQ:AMZN) and McDonald’s (NYSE:MCD), have announced wage increases in the last one month to attract more workers in a tight labor market.
Some have raised wages without increasing the minimum hourly pay.
BoA said since 2010, its minimum hourly wage will have increased by more than 121%. The shares fell 0.4% on Tuesday.
Bank of America Down After Saying It Will Raise Minimum Pay to $25 an Hour by 2025
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