B&Q claim no worker will lose out due to introduction of the National Living Wage but changes are on the way for staff.
The statement follows MP Siobhan McDonagh publicly shaming B&Q's pay deal for workers claiming the store has cut its allowances package to fund the introduction of the Government's National Living Wage.
The London MP asked David Cameron during Prime Minister's questions to ensure next week's budget includes regulation that no worker takes home less income due to the living wage rise.
There are more than twenty B&Q stores across Yorkshire, and all staff will see changes to their allowances under the company's Pay and Rewards Framework.
Ms McDonagh told Mr Cameron: "A friend of mine works a 39 hour week including Sundays and Bank Holidays on the shop floor at B&Q.
"Can the Prime Minister imagine his shock when he discovered that he was going to lose money as a result of the introduction of the living wage.
"That's because to introduce it, B&Q are cutting allowances. As a result he's going to take home £50 a week less or £2600 a year after the hourly rate goes up."
A spokesperson for B&Q said they are offering compensation to the equivalent of 12 months of any reduction in overall pay for anyone who suffers a wage drop.
However she said no employee's basic salary will be affected by introducing the National Living Wage.
She said: "Our people are very important to us and B&Q is committed to being a good payer and remaining so in future.
"No employee’s basic salary will be reduced by these changes. From 1 April 2016 our minimum rate will be £7.66 per hour (£15,524.48 pa), this is 46p more than the National Living Wage’s £7.20phr.
"This will be our minimum rate for all employees, regardless of age, not just those 25 years and over who are covered by the National Living Wage.
"As a result, 90% of our Customer Advisors will get an increase in their basic salary on 1 April 2016."
The company said they are 'aligning allowances' which they believe are currently paid inconsistently which includes standardising bank holiday pay and bringing Sunday pay in line with other trading days.
The spokesperson said: "The majority of our employees will be unaffected or better off. We are mindful it’s a challenging situation for those who are affected and are offering them compensation equivalent to 12 months’ worth of any reduction in overall pay."
David Cameron said B&Q workers will also benefit from being able to earn £11,000 a year without taking having to pay any tax.