BANGKOK, THAILAND - THAILAND on Friday decided to raise minimum wages by 4.6 per cent next month to cope with inflation following a meeting between the government, employers and workers' representatives, an official said.

'The decision to increase the minimum wage is in line with inflation that's more than five percent now,' Chuthatawat Indrasukhsri, permanent secretary at the labour ministry, said.

The wage commission meeting Friday comprised 15 representatives from the government, employers and workers.

Unskilled workers in Bangkok and eight surrounding provinces will receive a nine baht increase in their daily wages to 203 baht (S$8.71) from the 194 baht rate implemented in January this year.

Workers in the northernmost province of Chiang Rai will however receive a higher increase of 11 baht to raise their daily wages to 151 baht.

The agreement follows a May Day demonstration in Bangkok at which thousands of protestors called for a minimum wage of 233 baht a day and a curb on rising commodity prices.

Commerce ministry data released Thursday showed inflation in April soared to a 23-month high of 6.2 per cent, while inflation for the first four months of this year was at 5.3 per cent. -- AFP