Wells Fargo will raise its minimum wage from $15 to $20 an hour based on employee location. The pay increases will take effect by the end of 2020.
“Companies have an obligation to help communities and employees reach their potential. An important part of this is ensuring we are doing our part to pay employees at a rate, which recognizes the difference in cost of living across the country,” said CEO Charlie Scharf. “Our employees are our most valuable resource, and these pay increases are just one way we are investing in our people and ensuring that Wells Fargo continues to be a great place to work.”
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The pay increase will affect 20,000 of the bank's U.S. employees. The company says it wanted to issue the pay increase to better account for "the cost of living in each Wells Fargo market."
Employees working in the San Francisco or New York market will receive the high end of the range, $20 an hour, while employees in Charlotte, N.C., and Des Moines, Iowa, will receive the lower end of the margin, $16 an hour. Wells Fargo says it also plans to assess the hourly pay for employees who are already earning paychecks close to the new minimum wages. The bank recently increased minimum wages by 32 percent when it raised pay to $15 an hour in March 2018.
Bank of America, JP Morgan Chase and Citi Group all raised their minimum wages in a range of $15-20 an hour.