Dive Brief:
- PNC is raising its companywide minimum hourly pay to $18 from $15 beginning Nov. 22, the bank said Monday in a press release.
- The Pittsburgh-based bank joins other financial institutions such as Bank of America, JPMorgan Chase, Wells Fargo and Citi in boosting its minimum wage over the past two years or so.
- The boost is meant for both legacy PNC employees and BBVA USA workers transitioning to the PNC umbrella in October, PNC said.
Dive Insight:
The $3-per-hour boost accounts for a 20% increase for legacy PNC employees. But it represents a bigger jump for BBVA staff, for whom minimum hourly pay is $11, according to The Associated Press.
The raise, PNC said in its press release, is meant to help the bank "attract and retain the best talent" and "strengthen the bank's competitive position in the marketplace."
Bank of America, by comparison, announced in May it planned to boost its minimum wage to $25 by 2025. Wells Fargo, in March 2020, said it would boost hourly wages — to $20 in the highest-cost markets. JPMorgan Chase, likewise, said in 2019 that it would raise hourly pay, depending on market, to between $16.50 and $20 per hour. Citi bumped its minimum hourly wages to $15 in August 2019.
"This isn't just a responsible move for the bank," said PNC CEO Bill Demchak. "This increase allows us to make a positive difference, leveraging the power of our resources to help all move forward financially."
The median hourly wage for tellers in 2020 was $15.68, according to the Bureau of Labor Statistics. Several other U.S. companies have raised hourly wages over the past year, including McDonald's, Chipotle and Target.
"Our employees are our most precious resource, and by investing in them, we invest in our future," said Vicki Henn, executive vice president and chief human resources officer at PNC. "PNC's success is dependent on the well-being of our employees, so it's critical that we continue to offer a total rewards package that includes competitive benefits and pay, reflecting our long-term commitment to their well-being."
The Pittsburgh-based bank announced plans to purchase the American arm of Spanish bank BBVA for $11.6 billion last November. PNC will become the fifth-largest retail bank in the U.S. by assets when that acquisition is complete Oct. 8.
