Promotions are on the rise as the banking industry looks to drive its business in a way that is sustainable, transparent and relevant to the customers and communities it serves.
In 2019, the Bank of Canada raised the maximum wage and raised it for the first time since 2005.
It also made it possible for employees to be paid in cash in order to support families.
The Bank of Nova Scotia and the Canadian Imperial Bank of Commerce announced the launch of the Canada Revenue Agency (CRA) bank promotions.
The new incentives, which will kick in when bank employees reach their 20th year of service, will pay employees $13 an hour to work part-time.
The Bank’s new rules will increase the minimum wage and increase its eligibility for the CRA tax credit for employers, while ensuring the bank is not making too much money off the backs of Canadians.
For the bank, the increased pay will mean an extra $7 million in additional revenue, according to the bank.
For the CRA, the pay increase is a boon, as it will be able to provide $7.4 billion in tax credits to Canadian businesses and individuals, the bank said in a statement.
Banks have been trying to raise wages for years.
In 2019 alone, the U.S. Federal Reserve raised the minimum hourly wage for retail workers to $10.25 and set up a $1.5 billion incentive program to encourage more women to enter the workforce.
Canada is the only major economy in the world that does not have a minimum wage, and a number of provinces have introduced minimum wage legislation.
A similar scheme was recently introduced in New Brunswick, but the measure has not been approved by the legislature.