Minimum wage is going up by 40 cents an hour.

The provincial government is increasing the minimum wage in two stages. The first increase will be 40 cents and bring the minimum wage rate to $10.85 per hour, effective Sept. 15, 2016.

This new rate includes the 10 cents scheduled for the 2015 cost of living increase, plus an additional 30 cents. 

A second increase of 30 cents plus an amount based on the 2016 cost of living (estimated to be 10 cents) will bring the minimum wage rate to $11.25, effective Sept. 15, 2017.

"That will add up to the sixth minimum wage increase since I've become premier," said Premier Christy Clark in making the announcement Wednesday morning.

"It means about $1,400 more in your pocket, if you have a full-time minimum wage job. This will put us about third for minimum wage across the country."

While announcing the increase in the minimum wage, Clark said there was also concern among the small business community about the increase. 

"I want to re-affirm today our commitment to lower the small business tax rate from 2.5 per cent to 1.5 per cent.

"That's a reduction in small business tax of 40 per cent. It's one thing to raise the minimum wage, and that's important...but, it's also important that people are able to find a job. That means we need to continue to support small business."

She said more than 1 million British Columbians work for small businesses, the largest percentage in the country.

"In British Columbia, most people who are living on minimum wage are living with their parents. Most of them are under 24. Many, many of them are still in school," said Clark.

"Those are the people minimum wage is focussed on. There are some people who work full-time on minimum wage. Most of them don't stay on minimum wage for even a year according to the statistics we have."

The province also announced $2.88 million in job training programs, an expansion in small business training grants and an expansion of the "Get Youth Working program."

Photo: BC gov't