Big-name corporations such as a major bank and Amazon have declared significant wage hikes, with the former starting at $25 per hour. Here's when these changes will be implemented.
Amazon and Bank of America Increase Minimum Wages and Lower Healthcare Costs
In a significant move to support their employees, both Amazon and Bank of America have announced plans to increase minimum wages and lower healthcare costs.
Amazon, the global tech giant, has pledged to invest over $1 billion to enhance wages and reduce healthcare expenses for its workforce. This decision represents a 34% reduction in weekly contribution costs, a significant step towards improving the financial well-being of its 1.55 million global employees.
In a related development, Amazon announced it will increase its average hourly pay to more than $23 per hour, marking the final phase of a plan initiated in 2017 to boost the bank's base pay from $15 an hour to $25 an hour by 2025.
Meanwhile, Bank of America, one of the largest financial institutions in the U.S., has decided to raise its minimum pay for full- and part-time U.S. hourly workers to $25 an hour. This change, effective next month, will push the minimum salary for full-time U.S. employees to over $50,000 annually.
Sheri Bronstein, the Chief People Officer of Bank of America, made the announcement in October 2025, revealing that full-time employees will see an average annual pay increase of $1,600. Moreover, the starting salary for full-time U.S. workers at Bank of America will have increased by more than $20,000 since 2017.
In addition to wage increases, both companies are also focusing on lowering healthcare costs. Amazon will introduce an entry-level healthcare plan that will cost $5 per week and $5 for co-pays, starting next year. This move is expected to provide relief to many employees who have been grappling with high healthcare costs.
These decisions by Amazon and Bank of America signify a growing trend among major corporations to prioritise employee welfare and financial security. By investing in their workforce, these companies aim to foster a more productive and satisfied workforce, ultimately contributing to their long-term success.
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