Following eight days of strained negotiations in a committee representing employers, workers and the government the announcement was made with an aim to ease tensions in the country's main export industry.

The new wages will be effective from the beginning of next year onwards. The increase is below the most demanding union claims, who were aiming to reach an agreement for 160 US dollars a month.

Three years ago, a campaign to double the then-minimum wage of 80 US dollars in the textile, garment and footwear industries resulted in public protests. A 100 US dollars wage was set for 2014 and 128 US dollars for 2015. However, tensions never disappeared.

The clothing and footwear industry is Cambodia's biggest export earner, employing roughly 700 000 people in more than 700 garment and shoe factories. 

In a statement, the International Labor Organization acknowledged the efforts of all parties and praised the consensus reached: “The ILO Country Office wishes to acknowledge the genuine efforts by all parties to reach a tripartite consensus, and to acknowledge the significant progress made in using data, analysis and tripartite consultative approaches to arrive at a decision”.