India's largest car maker, Maruti Suzuki India Ltd (MSIL) has reached an agreement on the corny issue of wages with workers at its Gurgaon plant.

Maruti Suzuki India Chief Operating Officer for Administration, S Y Siddiqui said: "After four months and 40 meetings, we are very happy to finalize the wage hikes for our both Gurgaon and Manesar plants".

Under the new agreement, the average salary of workers will rise by Rs 18,000 per month during a period of the coming three years. After the hike, the workers at the plant will become the most paid shop floor workers in the country. The new rules states that the wage agreement will be implemented with retrospective effect from April this year.

The workers at the plant will receive 80 per cent of the increased salary this year and the remaining the coming two years. Maruti Udyog Kamgar Union General Secretary Kuldeep Janghu pointed out that the union has reached an agreement with the management for wages.

He said that the agreement is significant as even a junior level employee will receive a hike of Rs 15,000 per month. He also said that the agreement shows that management and workers can resolve all issues through dialogue.