DIY store chain B&Q is to raise the hourly pay of 90% of its shop floor workers to at least £7.66 an hour from 1 April 2016.
Shop floor employees currently receive a minimum of £6.70 an hour.
The new pay rate is higher than the statutory national living wage rate of £7.20 an hour for employees aged 25 and over, which will come into effect from April 2016.
Under the changes, there will also be a reduction in bank holiday working hours and pay for some staff.
A spokesperson for B&Q said: “Our people are very important to us and B&Q is committed to being a good payer and remaining so in future. The proposed changes will make B&Q’s pay simpler, more consistent and more effective, and enable us to recruit and retain the best people, so we can continue to serve our customers to the highest standards.
“There is also a lot that is not changing; it’s not just about basic salary. The reward package for all employees includes holidays, pension contributions, discount card, share schemes, childcare vouchers, life assurance, performance bonuses, as well as career development, training programmes and enhanced maternity and paternity leave.
“We’re mindful it’s a challenging situation for some and are continuing to consult with the elected representatives on our proposals to compensate those affected.”