NEW YORK BNY Mellon will increase its minimum wage next year to $22.50 an hour from $20 and expand mental health benefits for employees, the bank said in a statement on Friday.

The pay boost takes effect in March and is the company's third in the last three years.

The oldest U.S. bank is among the largest lenders increasing minimum compensation for workers. Bank of America raised its minimum hourly wage to $23 in October, heading toward a goal of $25 by 2025.

BNY Mellon will also expand its mental health benefits to cover 12 therapy sessions a year, expanding from five currently.

"We want our employees to feel valued and know that they are being compensated competitively," said Sharyn Jones, BNY Mellon's global head of talent. "It's important that we continue to invest in our culture in order to attract and retain top talent."

(Reporting by Lananh Nguyen; Editing by Sharon Singleton)