In an effort to keep pace with other salary increases in Alberta, the province is hiking the minimum wage from $8 to $8.40 starting on April 1.

The increase follows through on an announcement in June 2007 that the province's minimum wage would be automatically adjusted every April, based on the average weekly wage index that consists of data on jobs, payroll and hours compiled by Statistics Canada.

"Over the last year, average weekly earnings increased roughly five per cent," Premier Ed Stelmach said on Tuesday. "And with, of course, our vibrant economy [and] low unemployment, most employers are paying more than the minimum wage."

According to the province, about 3.5 per cent of working Albertans, or 70,000 people, make the minimum wage. The majority are teenagers working in the food and hospitality industries.

Alberta will have the third-highest minimum wage among provinces, behind Ontario ($8.75) and Manitoba ($8.50).