JPMorgan Chase announced Tuesday that it’s giving pay raises to 22,000 US employees who work in its branches and customer service centres as part of a $US20 billion investment in the business that’s connected to the company’s tax windfall.
These employees will see hourly wages increase to between $US15 and 18, up from $US12 and $US16.50, the company said in a statement. The pay bump goes into effect in over 100 cities across the country, depending on the cost of living, on February 25.
As part of the $US20 billion, five-year investment, JPMorgan is also opening up 400 new branches, hiring 4,000 new employees, increasing lending efforts, and ramping up philanthropic giving.
“Having a healthy, strong company allows us to make these long-term, sustainable investments,” CEO Jamie said in a statement. “We are excited about further investing in our outstanding workforce and expanding into new U.S. markets. When we enter a community, we enter it with the full force of JPMorgan Chase behind it. We hire people. We lend to and support local businesses.”
Here are other key details from the $US20 billion investment plan, from the statement:
- Investing in employees with further increases to wages and benefits. Wages will increase 10 per cent on average – ranging from between $US15 and $US18/hour – for 22,000 employees.
- Expanding the branch network into new U.S. markets, leading to increased small business lending and philanthropic investments, and further support for local low-and moderate- income communities.
- Increasing community-based philanthropic investments by 40percent to $US1.75 billion over five years.
- Increasing small business lending by $US4 billion.
- Accelerating affordable housing lending by (a) increasing mortgage lending in low-and moderate-income communitiesand (b) accelerating commercial lending to buildaffordable housing.
The bank said the new investments were “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.”
This story is developing.