Deputy Labour Commissioner Amal Majumdar told PTI that the wage settlement was signed in the presence of Labour Secretary Amol Roy Chowdhury.
He said that as per the settlement, each worker would get a raise of Rs 1,600 in basic pay and Rs 1.55 hike in DA per point.
The Rishra plant, which employed around 1,000 permanent workers and another 1,000 contractual workers, manufactures ceramic insulators used in electrical transmission networks.
The illegal strike was called demanding wage revision of the workers.
The plant had six trade unions as bargaining agents.