The country’s largest hardware retailer is set to trial a four-day working week for its employees.

An agreement was reached between the Wesfarmers-owned retailer and the Shop, Distributive and Allied Employees Association that will see the hardware giant allow its 40,000 full-time employees to work their 38 hours over four days, or across a nine-day fortnight.

Employees will also see penalty rates increased for early shifts, late shifts, and Saturday shifts, plus a 10.5 per cent pay rise, to be rolled out over the next three years.

“This package is good for workers and for this major retailer alike, setting Bunnings up as a preferred employer in a tight retail market,” SDA national secretary Gerard Dwyer said, calling it a “significant breakthrough.”