UPMC to raise its minimum wage to $18 an hour

Health care giant UPMC announced it is raising minimum wage for entry-­level positions to $18 an hour by 2025 for workers in Pittsburgh, Harrisburg and Williamsport.

Starting wages at UPMC’s other sites in Western Pennsylvania, western Maryland and southwest New York will reach $18 an hour by 2026.

“This is a big investment in our workforce,” John Galley, UPMC senior vice president and chief human resources officer, said during a news conference Thursday. “We believe we are the first hospital system to do this in the state of Pennsylvania.”

The state and federal minimum wage is $7.25 per hour.

Downtown-based UPMC and its rival Allegheny Health Network raised their starting wages to $15 in recent years, with UPMC making the first move in 2016.

The move to $15 is a trend that has taken hold in other industries.

Drug store chains Walgreens and CVS have boosted pay to $15.

One of the country’s largest banks, Pittsburgh-based PNC Financial Services, also raised its pay to $18 in 2021.

Similarly, retailers such as Target, Best Buy and Costco have courted workers by sweetening paychecks in recent years.

Labor advocates have been fighting for higher minimum wages to help shrink inequality and allow people to afford more necessities. A 2022 survey by online bank LendingClub found that, in June 2022, 61% of Americans were living paycheck to paycheck.

UPMC is the largest non-government employer in Pennsylvania with 95,000 workers.

“In 2016, we were the first health care system in Pennsylvania to announce and achieve $15 an hour, and this next step demonstrates our commitment to support our workforce and attract new talent. Once again, UPMC is the first health care employer in the state to make this commitment,” Galley said.

“In addition to this adjustment to our entry-level wages, we aggressively move our salary ranges each year as the market moves, to ensure we remain the health care employer of choice,” Galley added.

The health care field is faced with staffing shortages, which have been exacerbated by covid-19.

An April 2022 survey by the University of Pittsburgh revealed that among workers surveyed, a staggering 93% are considering leaving the industry.

That survey also found that employees said the best way to support workers who are facing high patient volumes and long hours is an increase in pay and more benefits, like cheaper or free health insurance.

It also found that 62% of workers reported living paycheck to paycheck and 28% reported not being able to pay essential expenses.

UPMC said the pay boost is part of a package that also includes benefits such as a defined benefit pension plan paid by the health system, a retirement plan with percentage match, tuition assistance, first dollar health care coverage and paid parental leave.

A portion of UPMC’s workforce is covered by collective bargaining agreements. SEIU Healthcare PA did not respond to calls for comment Thursday.