PHNOM PENH: Cambodia on Thursday set a new monthly minimum wage for workers in the garment, footwear, and travel goods sector at US$204 for next year, up 2 percent from the current level of US$200, according to the Ministry of Labor and Vocational Training.

The announcement came after the National Council for Minimum Wage voted on a minimum wage of about US$202 per month for next year, which was then added by US$2 by the Royal Government of Cambodia.

The council members include representatives of the government, the manufacturers' group, and the trade union. The new minimum wage will take effect from Jan. 1, 2024, the ministry said.

Besides wages, workers in the garment, footwear, and travel goods sector will also receive other fringe benefits for regular attendance, transportation, rent, and seniority bonuses, the minister said.

The garment, footwear, and travel goods industry is the largest foreign exchange earner for Cambodia. The sector consists of roughly 1,077 factories and branches, employing approximately 800,000 workers, mostly female.

Among them, there are 802 garment factories, 140 shoe factories, and 134 travel goods factories.

The monthly minimum wage for the sector is US$200 in 2023, an increase from US$194 in 2022.