BofA doles out more pay raises, electric-car perks

Bank of America is boosting pay for tens of thousands of U.S. employees that earn less than $100,000 a year and adding reimbursements for a portion of electric-vehicle purchases.

Base salaries will climb as much as 7% for workers who have been with the firm since 2021 or earlier, according to a memo seen by Bloomberg News. The size of the raises, which start at 3% and kick in next month, will be based on how many years each employee has worked at the company.

Bank of America, which employs more than 200,000 worldwide, is also evaluating compensation for similar roles outside the U.S., according to the memo, which was confirmed by a company representative. Those decisions will be made and communicated “in the coming weeks,” the Charlotte, North Carolina-based company said in the memo.

U.S. firms are battling to retain employees in a tight job market marked by a record number of open positions and historically low unemployment. Bank of America previously announced that its hourly minimum wage would increase to $22 from $21, another step toward its goal of reaching $25 an hour by 2025.

Bank of America also will give a $4,000 reimbursement to employees that buy an electric vehicle, or $2,000 for a new lease, according to a separate memo. The one-time perk will be available starting in July to workers who have served at least three years and have annual salaries of less than $250,000.