The new salary is $3 above what the government considers a poverty wage.
The Labour Advisory Committee (LAC), comprised of 14 government, seven factory and seven union officials, agreed on the figure, which now needs government approval.
Unions had proposed $140, while employers suggested $110 and the government officials $121, which was upped on Wednesday to $123.
Ath Thorn, president of the Cambodia Labour Confederation and the Coalition of Cambodian Apparel Workers Democratic Union, told dpa that the 123-dollar proposal received 16 votes from the 25 members present, while the union proposal of $140 received only two votes.
"I think $123 is still low and the LAC is not supporting the workers' rights. Normally they support the government and employers."
Approximately 500 000 people work in Cambodia's garment sector, which exports goods worth $5.5bn per year and produces clothes and shoes for brands including Gap, H&M and Zara.