The provincial NDP government is moving ahead with plans to raise the minimum wage to $15.00 an hour.

Alberta’s minimum wage will rise a dollar to $12.20 per hour and the liquor server rate will be removed, effective October 1, 2016.

The government announced Thursday it'll rise a further $1.40, to $13.60 per hour, on October 1, 2017, and by another $1.40, to $15 per hour, on October 1, 2018.

Alberta's Minister of Labour, Christina Gray admits it's been a polarizing issue.

"One of the things I really appreciate through our consultations process was we had businesses, the various lobby groups, labour organizations, low wage workers at the table discussing these issues and I think the consultations really showed a lot of good engagement on this, I'm certainly not suggesting we changed anyone's minds," Minister Gray says.

She says Alberta still has the best business climate in Canada and the government will do all it can to help businesses hit by the increase.

"Alberta is and remains one of the best places to start a business with a young and diverse workforce, we have the lowest taxes in Canada, the reduction of the small business tax, no PST, no payroll tax, no health care levies, so Alberta businesses have a lot of advantages," she says.

She says the decision to move ahead with the phased in approach should give businesses a chance to prepare for the increase.