BMO raises minimum pay for U.S. workers to $20 in fight for labor

Bank of Montreal is raising the minimum wage for its U.S. branch and contact-center employees to $20 an hour, its second such pay bump in less than a year, as companies fight for workers in a tight labor market.  

The increase from $18 an hour takes effect Aug. 7, the Toronto-based bank said in a statement Monday. The boost applies to current full- and part-time workers as well as new hires.

Daniel Acker/Bloomberg

Financial institutions are increasing pay for frontline workers to attract and retain staff as labor markets in Canada and the U.S. hover near historically tight levels. U.S. employers added more jobs in June than forecast, and the unemployment rate held near a five-year low.

In October, Bank of Montreal raised its U.S. workers’ minimum hourly base pay 20% to $18 an hour. The company also raised base pay for a majority of its workers — including those affected by the latest increase — by 3% in June. 

Bank of Montreal “continues to monitor and will adjust compensation accordingly to align with the shifting banking market,” it said in Monday’s statement.

Canadian Imperial Bank of Commerce said last month that it was boosting its minimum wage and pledged to push it even higher in the next few years. The lender’s minimum wage will rise to C$20 per hour in Canada and $20 in the U.S. in July, and the bank committed to increasing those figures to C$25 and $25 respectively by the end of 2025.