Bank of america and amazon Announce Significant Wage Increases for U.S. Workers
Charlotte,NC & Seattle,WA – In a move impacting over 1.7 million workers,both Bank of America and Amazon are substantially increasing compensation for their U.S. employees. Bank of america announced Wednesday it will raise its minimum hourly wage to $25, effective next month, while Amazon is investing over $1 billion in wage increases and reduced healthcare costs.
These announcements reflect a broader trend of companies responding to a tight labor market and rising cost of living,particularly for hourly workers. Bank of America’s increase fulfills a commitment made in 2017 to reach $25/hour by 2025, raising the annual salary for full-time employees to over $50,000. Amazon’s changes include an average annual pay increase of $1,600 for full-time employees and a new entry-level healthcare plan costing just $5 per week for premiums and co-pays, a 34% reduction in weekly contribution costs.
Bank of America’s wage hike will affect its full- and part-time U.S. hourly workforce. The $25/hour rate represents a more than $20,000 increase in starting salary for full-time workers since 2017, when the bank initially announced its plan to raise base pay from $15 an hour.
amazon, which employed 1.55 million people globally as of the end of last year, is also lowering healthcare costs for its employees.The company’s new healthcare plan will be available beginning next year. Amazon’s investment in both wages and healthcare comes as the company navigates efficiency measures, including recent mandates for employees to relocate to primary hubs or resign.
Both companies’ actions are expected to impact a significant portion of the U.S. workforce and could put pressure on other large employers to follow suit. The changes are slated to take effect in October for Bank of America and in the coming year for Amazon’s healthcare plan.