Two-wheeler giant Hero Motocorp has finally put an end to wage-dispute with its workers by agreeing to hike their wages by Rs 9,000 a month over the next three-years.

According to the emerging media reports, Hero agreed to increase permanent workers' wages by Rs 5,400 (60 per cent of the Rs 9,000) in the first year, and against by Rs 3600 over the next two years.

People with direct knowledge of the matter also revealed that the two-wheeler company also promised that it would hike its contribution to the wage welfare fund to Rs 21 lakh, from Rs 11 lakh.

The company's new wage agreement with workers will be valid for a period of three years, with retrospective effect from 1st of August, 2012.

A statement by the company also mentioned that the initiative was taken to establish a benchmark for a balanced as well as a reasonable wage structure for manufacturers in the region.

Nearly a month-and-a-half ago the settlement between the management and workers was almost all done but the talks broke down at the eleventh hour.

Meanwhile, Hero Motocorp surprised the market by reporting better-than-expected results for the quarter ended March 31. While the company's quarterly volumes slipped 3 per cent year-on-year, both net revenues and net realizations jumped 2 per cent year-on-year. Margins expanded 120 basis points to 13.8 per cent.