Fifth Third Bank raises minimum wage for employees to $18

West Palm Beach, Fifth Third Bank exterior. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images)

Employees of Fifth Third bank who make the bank's minimum wage will soon be paid three dollars more per hour

The Cincinnati-based bank announced Tuesday that approximately 4,900 employees who currently make $15 an hour will soon be making $18 an hour, more than $10 per hour higher than the federal minimum wage.

The bank says it has raised its minimum hourly wage by 50% over the past two years after raising it to $15 in January 2018. Fifth Third says since they raised minimum wage in 2018 from $12 per hour, employee turnover year-to-year was down 16% in those jobs affected by minimum wage.

"A competitive compensation and benefits package is essential to our ability to attract and retain the industry's best and brightest. It is that talent that differentiates Fifth Third and enables us to serve our customers with distinction,"  said Chairman, President and CEO Greg D. Carmichael. 

The raise will add about $500 more per month, before tax, to minimum wage employees. 

"This wage increase will make a meaningful difference in the lives of our employees," said Chief Human Resources Officer Bob Shaffer. "It could ease a car payment, facilitate a student loan payment or signal the start of a savings plan for the future. "

According to a press release from the bank, the raise was done to recognize contributions of employees who drive the bank's success and the success of customers.

The raise will go into effect on October 28.