The minimum wage for factory workers in Cambodia's garment and footwear sector is to be raised to US$75 a month from 1 May.

The Ministry of Social Affairs announced the new minimum wage last week, after four rounds of talks between Cambodian garment and footwear industry unions and businesses broke down last month.

Local unions in Cambodia who took part in the negotiations had called for a wage hike to between US$89 and US$150 a month.

The minimum wage for garment workers in Cambodia is being increased from US$61 a month. However, the Asia Floor Wage Alliance says the new figure is still just one-quarter of the monthly living wage of US$274 a worker and her family in Cambodia need to cover basic needs. In addition, the minimum wage looses purchasing power due to annual inflation.