Gov. Ed Rendell yesterday signed legislation increasing Pennsylvania's minimum wage by $2 per hour, a change that will be phased in over the next two years.

The minimum wage will rise to $6.25 an hour on Jan. 1, 2007, then to $7.15 an hour on July 1, 2007.

The increase will take effect more slowly for employers with the equivalent of 10 or fewer full-time employees, although franchises of larger chains will not qualify for that exemption. Employers that do qualify will pay $5.65 an hour beginning Jan. 1, 2007; $6.65 beginning July 1, 2007; and $7.15 on July 1, 2008.