The provincial government announced Monday that their plan to increase Alberta’s minimum wage was in motion – and the minimum wage would increase by one dollar in the fall.

Labour Minister Lori Sigurdson said in a news conference that the general minimum wage in Alberta would increase to $11.20, from $10.20 per hour – in addition, the liquor server minimum wage will rise to $10.70 from $9.20 per hour.

"We believe minimum wage should at least allow people ot meet their basic needs, paying workers a decent minimum wage will translate into a better life for low income workers, and as a result a better life for families and all Albertans," Sigurdson said.

The changes go into effect on October 1.

The province said the differential rate will be eliminated in 2016.

The increase is part of the provincial government’s plan to increase minimum wage in Alberta to $15 per hour by 2018 – the increase was part of the NDP’s campaign promise to raise minimum wage.

“We’ve heard the minister say its $15 an hour, why? Because it was a campaign promise, frankly I think that’s the wrong answer,” Greg Clark with the Alberta Party said.

Sigurdson said the increase would also go to help reduce poverty – but the Alberta Chamber of Commerce isn’t convinced.

“You will see a reduction in employment, particularly with students,” Ken Kobly with the Alberta Chamber of Commerce said.

“The recurring theme is they will raise prices.”

The minister called that thought process fear-mongering.

“I think that’s a bit of fear-mongering going on in the community, what we know in other jurisdictions, that has not happened,” Sigurdson said.

Industry leaders have also been quick to criticize the plan – Chris Decock of Hudson’s Canadian Taphouse has written a letter to all government MLAs. He said only four have returned his request to talk about the changes.

“We really want to work with them and we just really want them to work with us, actions speak louder than words,” Decock said.

The province said the increase came following a meeting with stakeholders – officials said 48 stakeholders were involved in those discussions. The Alberta Chamber of Commerce said the discussions lasted a few hours.

The increase will make Alberta’s minimum wage the second highest in Canada – The Northwest Territories is the highest at $12.50. The lowest is in Saskatchewan, and is $10.20.

With files from Serena Mah