The amendment to existing labour laws is hoped to encourage companies in the key textile sector to begin staffing their factories in the evening, with the aim of creating as many as 200,000 new jobs, labour minister Vong Soth told lawmakers.

"The amendment ... of the labour law will help to create jobs for youths who are increasing in numbers every year," he said.

"It will be in the interest of society ... it will allow Cambodia to compete in the international market," he added.

Nightshift workers had previously received twice the daily rate, which in Cambodia averages around 50 US dollars a month.

Cambodia's opposition lawmakers reacted angrily to the decision and boycotted the vote.

Parliamentarian Son Chhay said the move would eat into workers' already small incomes.

"I don't believe that the wage cut for nightshift workers will create tens of thousands of jobs," he said, adding that at some factories workers were already treated "like animals".

The kingdom's largest trade union has threatened a nation-wide strike if the salary cut was approved.

Union leader Chea Mony said he would not accept the amendment.

"It will increase poverty," he said, adding that workers would protest the move by stopping work in the factories. He did not say when the strike would occur.

Cambodia's clothing sector employs 330,000 people, who are mostly young women from the impoverished countryside, working to support their families.

The country's garment exports, which account for 80 percent of foreign exchange, jumped 17 percent to 2.5 billion dollars in 2006. However, manufacturers warn that labour disputes could damage investment.