Big numbers always make for great headlines. If you’ve scrolled through any news feed lately, you’ve probably seen the buzz about a Bank of America, Walmart, and Target raise and wondered if it's finally time for your own paycheck to see some growth.
It's a lot to keep track of. One day it's a bank hitting a massive $25 minimum, and the next, it's a retailer changing how you earn an extra 50 cents. Honestly, if you aren't paying close attention, these announcements start to sound like corporate noise.
But there’s a real strategy at play here. Companies aren't just being "nice." They are fighting for people in a 2026 labor market that feels a bit... shaky.
The Bank of America $25 Minimum: More Than Just a Pledge
Bank of America basically just set the bar so high that most other companies are staring at it with a mix of awe and frustration. In October 2025, they officially bumped their minimum wage to $25 per hour.
This wasn't a sudden whim. They’ve been on this track for years. If you look back at 2017, their starting salary was significantly lower. Since then, they've added more than $20,000 to the annual starting pay for full-time U.S. workers.
Think about that. A full-time entry-level employee at BofA is now clearing $50,000 a year just for starting.
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Sheri Bronstein, the Chief People Officer at Bank of America, has been pretty vocal about this being a "launchpad." It’s not just about the $25; it’s about the 16 weeks of parental leave and the restricted stock awards that 97% of the staff gets. They want people to stay for decades, not months.
Walmart’s New 2026 "Performance" Twist
Walmart is doing things differently. They aren't trying to match that $25 figure. Instead, as we move into early 2026, they are rolling out a performance-based raise model that caps out at 5%.
It’s a major shift from the old way of doing things. In the past, you mostly got a raise just for sticking around. Now, they are looking at things like customer service scores and how much work you actually get done.
- The 5% Club: Only the "exemplary" workers get the full 5% bump.
- The Baseline: Most people with at least 10 years of tenure start with a 4% baseline, but that can go up or down based on performance.
- The Risk: If you’re in the bottom tier—roughly 5% of the workforce, according to internal estimates—you could actually see your raise shrink by 1%.
It’s a bit of a gamble. Walmart wants a culture of accountability, but critics are already saying a 5% max isn't enough to keep up with the cost of living in cities like Seattle or New York.
Target’s $24 Ceiling and the Benefits Game
Then there’s Target. They’ve been playing a middle-ground game. Their starting wage range is wide—anywhere from $15 to $24 an hour.
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Why the big gap? It’s all about the "local market." If you’re working at a Target in a small town in the Midwest, don’t expect that $24. But if you’re in a high-cost area or working a specialized role in their supply chain, that's where the higher numbers kick in.
Target is leaning hard into benefits to stay competitive. They recently lowered the bar for healthcare eligibility. Now, if you average just 25 hours a week, you can get into their comprehensive health plans. They also throw in things like doula reimbursement and free virtual physical therapy.
Why This Matters for the Rest of Us
So, why are these three specifically always in the news together? Because they represent the "Big Three" of the entry-level labor market. When they move, everyone else has to move.
We are seeing a "cooling" labor market in 2026. Unemployment is hovering around 4.5%, and people aren't quitting their jobs as fast as they were a couple of years ago. Companies know this. They aren't as desperate to hire as they were during the "Great Resignation," but they are terrified of losing the good people they already have.
According to data from Payscale and Mercer, most companies are budgeting for about a 3.5% merit increase this year. Bank of America is the clear outlier here, but Walmart and Target are staying right in that 3% to 5% sweet spot.
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What You Should Do Next
If you are looking to leverage this news for your own career, here is the reality:
Check the location. A "Target raise" sounds great, but it’s highly dependent on where you live. If you’re in a city where the cost of living just spiked, you have more leverage to ask for the higher end of that $24 range.
Performance is the new tenure. Walmart’s shift proves that just "being there" isn't enough for a big bump anymore. If your company is moving toward a performance model, start tracking your own metrics now. Did you hit your sales goals? Did you get a shout-out from a customer? Document it.
Look at the "Total Rewards." Don't just stare at the hourly rate. Bank of America’s stock awards and Target’s healthcare for part-timers can be worth thousands of dollars. Sometimes a $22/hour job with great health insurance is actually "richer" than a $25/hour job with none.
The era of "blanket raises" is sort of fading away, replaced by these more calculated, performance-heavy strategies. Stay sharp.
Next Steps for You: Audit your current compensation against these new benchmarks. If you're making under $20 in a major city, it might be time to look at the financial services sector or the higher-tier retail roles at Target. Download your company’s 2026 benefits guide today to see if they’ve lowered the hours required for health insurance, as many retailers are now doing to mimic Target’s strategy.