U.S. Bank is raising its minimum wage to $20 an hour

U.S. Bank is raising its minimum wage to $20 an hour in response to the high inflation workers are facing and to the competitive labor market.

The increase will take effect in November.

It's the second time the Minneapolis-based bank has adjusted it this year. It previously bumped its starting wage in June to $18 an hour, up from $15, which improved pay for about 10% of its workers.

The bank is also providing a 3% increase to the base pay for about 35,000 hourly and salaried employees — or about half of its workforce. The increases will affect branch, call center and operations center workers in the U.S.

"We know that the current economic and inflationary environment is presenting challenges for many people – including our employees," Elcio Barcelos, U.S. Bank chief human resources officer, said in a statement.

The bank said the wage increases resulted from conversations with employees about how inflation has been affecting them.

Many companies, including banks, have been boosting pay and their minimum wages amid a tight labor market.

Earlier this year, Wells Fargo increased its minimum wage to $18-$22 an hour, based on the employee's location. And Bank of America raised its minimum wage to $22 an hour, on its way to a goal of getting to $25 an hour by 2025.