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JPMorgan Chase to Increase Pay for Nearly 18,000 U.S. Employees


July 12, 2016

Overview

Employees are JPMorgan Chase’s most valuable assets, and we are committed to helping them succeed. We are increasing wages for about 18,000 U.S. employees. We will also continue to invest in employee benefits and training opportunities that enable our workers to increase their skills and advance in their careers. Together, these efforts help our employees support their families, strengthen our business and promote economic growth in our communities.

Wage Increase

  • Starting in February 2017, JPMorgan Chase & Co. will begin to increase hourly pay for about 18,000 full- and part-time U.S. employees located in more than 75 cities.
  • Over the next three years, the firm will create a new wage standard that ranges from $12/hour in locations with the lowest costs of living to $16.50/hour in locations with very high costs of living. The current lowest hourly wage for JPMorgan Chase employees is $10.15/hour.
  • Ninety percent of employees affected by this new policy are located in regions where pay will increase to between $13.50 and $16.50/hour. The new base pay for workers in the New York City and San Francisco metro areas will increase to $16.50/hour in 2019, while the new base pay for employees in Chicago, Seattle, Los Angeles and Washington, DC will increase to $15/hour in 2019.
  • Most of the employees who will benefit from this increase work as bank branch tellers and customer service representatives for the Consumer & Community Banking business.


Career Progression

  • For many of our employees, entry-level jobs are the first step to well-paying, highly-skilled roles at the firm. We provide employees with the training they need to advance within the firm and progress in their careers.
  • Already this year, we have trained over 7,000 branch tellers in the skills they need to move into more senior positions at the firm. As a result of these efforts, more than 40 percent of tellers are ultimately promoted into new roles at the firm, many within just a few years.
  • In 2016, we are investing more than $200 million in training entry-level employees in our Consumer and Community Banking business. These employees will complete more than 4.5 million hours of training this year.
  • We help employees continue their education by providing up to $5,000 per year in tuition assistance to employees pursuing undergraduate degrees and certification programs.
  • In addition to providing training and opportunities for our employees to advance into higher-skilled roles, the firm continues to hire many skilled workers for a range of well-paying technical careers across the firm, including in priority areas such as mobile and digital banking, audit, risk and compliance.


Benefits and Paid Leave

  • JPMorgan Chase offers benefit programs and policies, including paid leave, which support the needs of employees and their families. We provide benefits to all full- and part-time employees, including those working 20 hours per week or more.
  • Our comprehensive benefits package, including health care and retirement savings, on average, is valued at around $11,000 per year for employees in the new pay range. This figure is based on an employee in the new pay range who participates in all of the firm’s benefit programs, annualized. The actual value of the benefits provided may be slightly higher or lower.
  • In 2015, we spent $1.1 billion on medical benefits to cover approximately 190,000 U.S. employees, spouses and partners. Additionally, we contributed nearly $100 million towards health reimbursement accounts, which reimburse employees for out-of-pocket medical expenses.
  • We also pay up to 90 percent of health insurance premiums for employees in the new pay range such as tellers. This is because we consciously direct benefit spending toward these earners through higher company subsidies. We also offer free preventive health care to employees delivered through primary care physicians or onsite at 29 health & wellness centers, free wellness screenings, and free generic preventive maintenance drugs.
  • We provide retirement benefits, including a 401(k) savings plan and a pension plan. The firm provides a dollar-for-dollar 401(k) match of up to 5 percent of pay, plus an annual retirement savings contribution, which was $750 for employees who earned less than $60,000 in 2015. JPMorgan Chase is also one of the few Fortune 500 companies that continues to offer a defined-benefit pension plan.
  • The firm has offered parental and adoption leave programs for many years and, in 2016, increased the amount of paid time off from 12 weeks to 16 weeks for new parents who are primary caregivers.
  • We have long provided our employees with paid sick days and paid medical leave. We also recently increased bereavement leave time and added paid military leave for voluntary military service.
  • The firm provides low-cost back-up child care for employees in some locations, which covered 105,000 visits in 2015.


Global Workforce Skills Development

  • Through several targeted philanthropic initiatives, JPMorgan Chase is investing $325 million in skills development around the world. Middle-skill jobs—those that require a high school education, and often specialized training or certifications, but not a college degree—provide workers with a real and tangible pathway to opportunity. These jobs—surgical technologists, diesel mechanics, help desk technicians and more – offer good wages and the chance to move up the career and economic ladder.
  • These investments, which are designed to better align the skills of job seekers and needs of employers, include:
    • New Skills at Work is a five-year, $250 million global initiative to help inform and accelerate efforts to address the mismatch between the needs of employers and the skills of job seekers.
    • New Skills for Youth is a $75 million, five-year effort to address the youth unemployment crisis by increasing dramatically the number of young people who complete career pathways that begin in high school and end with postsecondary degrees or credentials aligned with good-paying, high-demand jobs.