The company also announced on Tuesday that it will require its vendors and suppliers to pay their employees at least $15 an hour.
“It costs us a few hundred million dollars a year ... but it’s an investment,” said CEO Brian Moynihan on CNN and added that the move was about maintaining a “great standard of living for our teammates.”
Last March the company raised its minimum wage to $20 an hour, one year ahead of schedule, impacting 200,000 employees, and says that 99 per cent of its vendors currently earn $15 an hour because of its policies.
“The key is for big companies like ours to set a standard,” added Mr Moynihan.
“We think it’s part of sharing our success with our communities.”
“A core tenet of responsible growth is our commitment to being a great place to work which means investing in the people who serve our clients,” said Sheri Bronstein, chief human resources officer at Bank of America.
“That includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.”
The move comes as Joe Biden continues to support a $15 minimum federal wage, which he again endorsed in his 28 April address to a joint session of Congress.
“The guys and women on Wall Street ... didn’t build this country. The middle class built this country. And unions build the middle class,” said the president.
“And that’s why I’m calling on Congress to pass the Protect the Right to Organize Act, the PRO Act, and send it to my desk to support the right to unionise. By the way, while you’re thinking about sending things to my desk, let’s raise minimum wage to $15.”