US House votes to increase minimum wage

WASHINGTON, May 25 (Reuters) The US House of Representatives today overwhelmingly passed a compromise measure to increase the federal minimum wage for the first time in a decade -- and provide billions of dollars in tax breaks to help businesses pay for it. The vote was 348-73.

The Senate is expected to provide final congressional approval later in the day so the legislation can then be sent to President George W. Bush to sign into law. It would raise the minimum wage over two years to 7.25 dollar per hour from 5.15 dollar per hour.

The measure was tucked into a hotly contested bill backed by the president to fund the Iraq war.

Democrats promised to raise the minimum wage in winning control of Congress last year from Bush's Republicans.

The president demanded that the legislation include business tax breaks, and House and Senate negotiators agreed to provide 4.84 billion dollar in relief over 10 years.

''This package will help millions of American workers better cope with the rising cost of living while helping our businesses expand and hire new workers to keep our local economies vibrant,'' said Democratic Rep. Charles Rangel of New York, chairman of the House Ways and Means committee.

REUTERS SZ PM0515