A bill to increase the minimum wage in Hawaii by $1 an hour over two years became law without Gov. Linda Lingle's signature.

Under the measure, the state's current hourly minimum wage of $6.25 will increase to $6.75 on Jan. 1, 2006, and to $7.25 on Jan. 1, 2007.

A job should be "a bridge out of poverty, an opportunity to make a living by working," according to the bill. "But for minimum wage workers, especially those with families, it is not."

The inflation-adjusted value of the state's minimum wage is 24 percent lower today than it was in 1979, and recent increases in the minimum wage have not restored the lost value, the measure said.

The federal minimum wage of $5.15 an hour has not changed since 1997.

"A key goal of my administration has been and continues to be ensuring the recovery, growth and vitality of Hawai'i's economy in order to guarantee our citizens the ability to earn a livable wage," Lingle said in a letter to lawmakers explaining her decision.

"Our minimum wage law is one component in providing a balance between the needs of employees and those who employ them," she said.

However, the governor said she was disappointed the measure, which became law Tuesday, didn't contain any relief for the business community.

Lingle's administration had proposed providing Island employers with an estimated $200 million in tax relief by reducing the amount they pay into the State Unemployment Compensation Fund.

The savings could have provided employers with money for wage hikes, increased benefits or investing in new equipment, state officials said.

Because of Hawai'i's low unemployment, the fund currently has a balance of $418.6 million, more than enough for the next three years, they said.

Lingle also noted that an administration proposal to increase Hawai'i's "tip wage credit," which employers can use to offset the pay rate of workers who earn tips, was taken out of the bill before it was approved by lawmakers. She had sought to raise the tip credit from 25 cents to 75 cents.

Lingle also let become law without her signature a bill establishing standards for discharges from commercial passenger vessels in Hawai'i waters.

The new law prohibits cruise ships from discharging into Hawai'i waters untreated sewage and wastewater that doesn't meet certain standards. The law also establishes other discharge criteria, at least some of which are similar to a memorandum of understanding between the state and the North West Cruiseship Association. Those who don't comply will face fines established by the state Department of Health.