JPMorgan Chase is the latest company to announce wage increases in the wake of recently passed tax reform. The financial services behemoth said it will increase wages to between $15 and $18 per hour for 22,000 of its employees.
The news comes after similar wage and 401(k) match increases were announced in the past few weeks. Aflac, Nationwide, Visa, Wells Fargo and SunTrust were just a few, with Starbucks also announcing on Wednesday a pay increase totaling of $250 million.
JP Morgan Chase’s announcement is part of what the company called a “$20 billion, five-year comprehensive investment to help its employees, and support job and local economic growth in the United States.”
“Having a healthy, strong company allows us to make these long-term, sustainable investments,” high-profile chairman and CEO Jamie Dimon said in a statement. “We are excited about further investing in our outstanding workforce and expanding into new U.S. markets.”
In addition to the wage increase, JPMorgan Chase plans to:
- Open up to 400 new Chase branches in new cities and states
- Hire 4,000 employees in new U.S. markets and for home lending, small business growth nationwide
- Increase loans to customers seeking affordable homes by 25 percent to $50 billion
- Expand philanthropic investments by 40 percent to $1.75 billion
“This long-term investment, which both increases and accelerates the firm’s current growth, is made possible by the firm’s strong and sustained business performance, recent changes to the U.S. corporate tax system and a more constructive regulatory and business environment,” the company added.
It noted that for the second time in two years, the firm is “increasing and accelerating hourly wages for many of its employees. “
The firm will raise wages from between $12 per hour and $16.50 per hour to between $15 per hour and $18 per hour in over 100 cities, depending on the local cost of living, effective February 25.
“This will benefit 22,000 full-and part-time U.S. hourly employees, notably in branches and customer service centers, in an effort to attract and retain great employees,” it concluded.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
