Legislators have approved a 50-cent hike in the minimum wage, raising it to $7.50 – 25 cents this year and 25 cents next – after the proposal was modified to bring along some reluctant Democrats.

In the end, the vote followed party lines in the Senate, with 18 Democrats in support and 17 Republicans against. It was 77-58 in the House, where eight Democrats voted against it and two Republicans in favor, with 16 legislators absent. The bill would raise the state’s current minimum wage from $7 to $7.25 this October and to $7.50 in October 2009.

Sen. Ethan Strimling, D-Cumberland, who had initially pushed a more expansive increase, said he amended the plan to get it passed. And, while it wasn’t all he had initially proposed, he said it was important. Each 25-cent hike raises minimum wages, on average, by $500 a year.

“For women who are supporting their families and children, $500 means a lot,” Strimling said. “When you raise the minimum wage, you raise people out of poverty.”

Sen. Dana Dow, R-Lincoln County, argued just the opposite, saying focusing on the minimum wage rather than passing meaningful economic policy that helps creates better jobs in the state gives people a false sense of accomplishment.

“We’re not taking care of the real problem with the economy in Maine,” Dow said. “We need to get people’s wages up where they belong through education and economic opportunities.”

Supporters say there are 26,000 people in Maine, who earn minimum wage, and 63 percent of them are women.

“That 25-cents an hour becomes very important for a single mom with two kids,” said Sen. Nancy Sullivan, D-York, who reminded her colleagues that the most onerous parts of the proposal had been amended.

Strimling originally wanted to raise the wage to $8.40 over two years and then require it to go up each year by the rate of inflation, without a future vote of the Legislature. He also wanted to increase the base rate paid to restaurant servers, who represent a large percentage of the minimum-wage earners in the state and supplement that rate with their tips. That plan caused an outcry, particularly from restaurant owners, who argued many so-called minimum-wage staffers actually earn good money through their tips.

Strimling then proposed raising the rate to $8 over three years and dropped the piece affecting wait staff, before proposing the increase to $7.50 over two years and dropping the inflation-adjustment.

Still some long-standing opponents to minimum wage hikes said even the modified plan hurts Maine businesses.

Rep. Brian Duprey, R-Hampden, who serves on the Labor Committee with Strimling and Dow, said the wage hike would be the seventh in seven years. “You are forcing me to give somebody a raise whether or not they deserve it,” said Duprey, who owns child care facilities. “Every 25 cent increase costs me $25,000,” said Duprey, adding that in this economy he can’t make it up by raising rates. “I can’t pass it onto my parents,” he said, meaning some other aspects of his employee benefit package will have to give.

Proponents argue that without the rate increase, Maine would actually fall behind other New England states, putting it at a disadvantage for attracting workers.

Massachusetts is currently at $8, Vermont at $7.68 and Connecticut $7.65. New Hampshire is moving to $7.25 this summer. The federal minimum wage just increased to $5.85 last summer and will hit $7.25 by the summer of 2009.