Phnom Penh: Cambodia agreed on Thursday to raise the minimum wage for workers in its crucial textiles and footwear sector to $140 per month from next year, short of the figures demanded by powerful trade unions long at odds with the government over pay.

The decision followed a vote among representatives of the government, factories and unions, in which the majority supported a raise from the current $128 to $135, which the government then increased to $140.

That fell short of the revised $160 asked for by major unions in a sector that generates $5 billion annually for Cambodia's fledgling economy. Unions complain their members struggle to make ends meet with that income.

The big unions had initially demanded $177 and had threatened to hold strikes if they were not met. It was not immediately clear whether the unions would pursue any action.