Cambodia says it will raise the minimum wage in its clothing industry by 9.4 percent to $140 a month.

The increase falls short of labor unions' $160 proposal.

A Labor Ministry statement said Thursday it was increasing the wages on instructions from Prime Minister Hun Sen after eight days of tense negotiations in a committee representing employers, workers and the government.

The new wages take effect at the beginning of next year.

Three years ago, a militant union campaign to double the then-minimum wage of $80 in the textile, garment and footwear industries resulted in clashes with police and a crackdown on public protests. A $100 level was set for 2014 and $128 this year.