The second stage of Gov. Rod Blagojevich’s plan to increase minimum wage in Illinois took effect Tuesday, hiking pay from $7.50 to $7.75 per hour.

Almost 650,000 workers are expected to benefit from the increase, which stems from legislation signed by Blagojevich in December 2006 raising the minimum hourly wage 25 cents each year until it peaks at $8.25 on July 1, 2010.

“Thousands of workers struggle every day at work to provide for their families. During a time of national economic crisis, increasing Illinois’ minimum wage will help workers put food on the table, pay for gas, and provide healthcare and education for their families,” Blagojevich said in a press release. “Starting July 1, the increased minimum wage will make it easier for working families to afford their basic necessities.”

An extra $520 in annual wages will be generated for each full-time worker receiving minimum wage.

Blagojevich will have raised Illinois’ minimum wage 60 percent in seven years by the time the wage peaks in 2010.