Nearly 1,700 employees of American Family Insurance group companies are getting a raise.

Madison-based American Family raised its minimum hourly rate from $15 to $20 an hour, the company announced in a news release Friday. The rate increase will go into effect retroactively to Jan. 1.

The wage increase affects nearly 1,700 of around 13,500 employees of American Family group companies across the country. Those employees work in customer service, claims, administrative and other areas.

American Family said it the wage increase will help attract and retain talent as well as positively impact employees and their communities.

“As an organization committed to exceptional customer service, it is essential we invest in our employees who provide that service,” Gerry Benusa, enterprise chief people officer, said in the news release. “Offering competitive wages not only helps ensure we attract and retain customer-focused employees, it also allows them to invest in their careers, dreams and communities.”

Employees at American Family also are offered a benefits package that includes health insurance, retirement benefits, flexible work arrangements, training and development opportunities, and paid time-off and parental leave programs.

American Family sells auto, home, life and business insurance primarily through its independent agents in 19 states.

Sarah Hauer can be reached at shauer@journalsentinel.com or on Instagram @HauerSarah and Twitter @SarahHauer. Subscribe to her weekly newsletter Be MKE at jsonline.com/bemke.