New York (CNN Business) Bank of America is raising its minimum pay to $20 an hour for its more than 205,000 employees.

The company will implement the new minimum wage over the next two years, according to comments made by CEO Brian Moynihan on MSNBC earlier Tuesday.

Paychecks will initially be raised to $17 an hour starting May 1, before climbing incrementally until 2021. Two years ago, the bank's employees got a raise to a minimum of $15 an hour, according to a company press release.

BofA BAC JPMorgan Chase JPM is not the first main street bank to up minimum compensation for its employees. In January last year,announced its intention to raise wages to a minimum of $15 to $18 for 22,000 employees depending on the local cost of living, and committed to $18 an hour for employees in Washington in November.

US employers are competing in a tight labor market in which fewer people are struggling to find jobs. In March, the unemployment rate stood at 3.8% year-over-year . Wages have been on the rise as well.

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