NEW YORK, May 23 Reuters Bank of America Corp said it was raising its U.S. minimum hourly wage to 22 on Monday, a step closer to its promise of paying workers 25 an hour by 2025.

The secondlargest U.S. bank by assets has been steadily raising its minimum hourly wage since 2017, when it was 15, and has been at the leading edge of banks raising base pay for hourly workers.

Last year the bank pledged to pay its workers at least 25 an hour by 2025, the highest minimum wage of any big retail bank, and also began requiring its vendors to set a minimum wage of 15 an hour.

This latest pay hike comes as inflation in the U.S. hovers at a 40year high, raising prices for food, healthcare and rent, which, in March, hit the highest level since 2006.

There are also a record number of unfilled jobs, which means banks face stiff competition for hiring new workers and are putting a high priority on keeping the workers they have.

Sheri Bronstein, chief human resources officer, said the bank39;s raises and other benefits are part of our focus on being a great place to work … so that we continue to attract and retain the best talent.

In January the bank gave around 97 of its employees special compensation awards, most in the form of restricted stock units. 

Reporting by Elizabeth Dilts Marshall; Editing by David Gregorio

Source Reuters