J.P. Morgan Chase & Co. (NYSE: JPM) will raise the company’s minimum pay by at least 18%, from $10.15 an hour to $12 to $16.50 an hour over the next three years, and the company said there are around 18,000 lower-tier employees would be benefited from the new increased salary, those who are include bank tellers and customer service representatives, according to the James Dimon, chief executive of the nation’s largest bank by assets.
The increasing pay will depend on the local cost of living, which concerns about 75 cities, while the company may under presence in such high-cost places as New York, San Francisco, Seattle, Los Angeles, Chicago and Washington, D.C. Also, the increasing pay would cause financial pressure on J.P. Morgan, which the raise is expected to cost the bank around $100 million over three years on top of employees’ regular wages, assuming an average increase of about $3 an hour.
“A pay increase is the right thing to do,” JPMorgan Chase CEO Jamie Dimon wrote in an op-ed that appeared in Tuesday’s New York Times. “Wages for many Americans have gone nowhere for too long.”
Raising wages is a reasonable measurement for companies under such a “super low interest but has subpar economic growth” situation. Average annual earnings across the country have risen a tepid 2% for several years, according to the Labor Department, barely keeping pace with inflation, though other measures have shown faster increases. Starbucks just announced on Monday that they will increase wages for workers by between 5% and 15%. In addition, other big companies such as Wal-Mart Stores Inc. and Target Corp., also planned to increase the minimum pay recently, concerning to the tight labor market. Mr. Dimon also said the raise would help companies attract retain staffs in such competitive environment.