Bosses at Homebase's new Australian owner Wesfarmers have pledged to pay workers aged under 25 the new living wage.
According to a report in Retail Week, the pledge is part of improving conditions for Homebase Bunnings employees. Managing director Peter Davis said he wanted to "provide a better overall income" for employees by offering more contracted hours and making jobs more permanent.
Mr Davis also reportedly said the retailer "would be looking to introduce performance-related pay scales, which will increase opportunities for reward and recognition."
He added: "We want to ensure that all team members are rewarded for effort and performance as well as providing an environment in which our teams can grow."
The government's living wage means that from next week all employers must pay workers aged 25 or over at least £7.20 an hour. The changes at Homebase means store staff pay will increase by an average of £555 per employee per year.