William Hill is to pay all of its 12,500 employees at least the national living wage rate of £7.20 an hour.
The national living wage, announced by Chancellor George Osborne in the Summer Budget 2015, is mandatory for workers aged 25 and over and will come into effect from April 2016.
The bookmaker will pay the new rate to all staff over the age of 18 from April 2016.
The increase will benefit around 4,500 William Hill employees, including 2,000 staff under the age of 25.
James Henderson, chief executive officer at William Hill, said: “I am pleased to announce that William Hill will commit to paying the national living wage to all our employees, including under-25 year olds from 1 April.
“Our shop workers are key to providing an enjoyable, responsible environment for customers in all our 2,370 locations and therefore think it only fair to extend it.”