As workers, unions and some forward-thinking retailers increasingly seek living wages for labour, production costs tend to increase and margins squeeze. 2016 was less like last year with fewer countries raising their wages after steep and fairly steady increases were seen in the last couple of years.

With chasing cheap items becoming scarce, the only way to do business, brands and retailers are faced with increasing efficiency and improving productivity to keep costs manageable and business afloat.

Let’s have a look at which countries had to face wages increase this year.

The UK

To ensure they earn what’s actually necessary for life in the country, the Living Wage Foundation upped the rate of pay for workers in the U.K. In October, the Foundation announced that the U.K. living wage rate would increase 2.4 per cent to 8.45 pounds ($10.34) an hour in keeping with the higher cost of living, and the London rate jumps 3.7 per cent to 9.75 pounds ($11.93) per hour.

This living wage is a voluntary one that companies aren’t required to pay. And though it’s wee bit higher than the government-mandated 7.20 pounds ($8.81) per hour for workers over age 25, many companies have opted to pay it.

Cambodia

Continuing the upward labour cost trajectory, Cambodia is set to raise its minimum wage for garment workers again. The country’s ministry of Labour and Vocational Training said in a September statement that it would raise the minimum wage for clothing and footwear workers in the country to $153 a month starting at the beginning of next year, it has been reported.

The 9.2 per cent increase follows last year’s 9.4 per cent jump that saw wages climb from $128 to the current $140, though it falls short of the $171 workers were looking for in 2017.

Vietnam

Vietnamese workers will see a 7.3 per cent increase to the minimum wage starting 2017, it is said. The increase amounts to 180,000-250,000 Vietnamese dong ($8-$11) more a month depending on the region. The current average monthly wage ranges from 2.4 million to 3.5 million dong ($108-$157), which, according to local labour unions only covers 80 per cent of the basic needs of the workers.