Discussion on Minimum Wage Increase in US Financial Sector... Will Biden's Pledge Become Reality?

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Bank of America (BoA), one of the four major banks in the United States, will raise its minimum wage from $20 (about 23,000 KRW) to $25 (about 28,000 KRW) by 2025.

On the 18th (local time), according to the political media outlet The Hill, BoA announced its plan to raise the minimum wage, stating that "each branch in the U.S. will also raise the minimum wage to at least $15 (about 17,000 KRW)."

BoA is the first among major U.S. financial institutions to raise the minimum wage to the $25 level.

BoA has steadily increased the minimum wage since 2010, and if the plan proceeds as scheduled, it will have raised the minimum wage by 121% over 15 years.

Sherry Bronstein, BoA’s Chief Human Resources Officer (CHRO), explained the reason behind the minimum wage increase, saying, "Investing in employees who serve customers is key to creating a good workplace," adding, "This allows the best talent to continue working and attract more."

Some argue that raising the minimum wage could lift millions of workers out of poverty.

Earlier, U.S. President Joe Biden attempted to legislate a minimum wage increase shortly after taking office, but the effort failed due to opposition from some Democratic lawmakers.

Instead, on the 27th of last month, President Biden signed an executive order to raise the minimum wage for federal contract workers from the current $10.95 (about 12,000 KRW) to $15 starting in March next year.

Following this Biden administration policy, retailers such as Costco, Walmart, and Target have also announced plans to raise their minimum wages.

States including California, Connecticut, Florida, Illinois, Maryland, Massachusetts, New Jersey, New York, and Virginia have also set their minimum wage at $15.

This content was produced with the assistance of AI translation services.