What is the Minimum Wage in the United States in 2025: Unveiling Regional Differences

Brazilian workers planning to move abroad often face a fundamental question: how much is the minimum wage in the United States? The answer is not as simple as it seems. Unlike Brazil, which adopts a single nationally defined value, the American system operates in a decentralized manner — creating scenarios where workers can earn between US$ 5.15 and US$ 17.50 per hour, depending on where they work.

The federal minimum wage in the US has remained frozen at US$ 7.25 per hour since 2009. However, states, counties, and cities set their own minimums, often much higher. This results in significant variation: while some states maintain the federal minimum, regions like California, Washington, and the District of Columbia already exceed US$ 16 per hour.

How the Minimum Wage Works in the American System

The calculation is fundamentally different from the Brazilian one. In the US, work is paid by the hour, not monthly. A full-time worker (40 hours per week) would earn:

US$ 7.25 (federal rate) × 40 hours × 4 weeks = US$ 1,160 per month

States with higher minimums result in much higher earnings. In Washington DC, where the minimum is US$ 17.50 per hour, a worker would earn approximately US$ 2,800 per month — more than double the federal rate.

Actual Values: State by State in 2025

Each American region has established its own salary levels, creating significant disparities:

States with the Highest Minimums:

• District of Columbia: US$ 17.50/h
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York: US$ 15.50 to US$ 16.50/h (depending on location)

Lower Values:

• Georgia and Wyoming: US$ 5.15/h (although in practice the federal rate of US$ 7.25 generally prevails)

This fragmentation reflects local economic realities — expensive cities like Los Angeles, Seattle, and New York need higher minimums to keep up with very high living costs.

Converting to the Brazilian Reality

For Brazilians, converting to reais offers an interesting perspective. Considering the exchange rate of approximately R$ 5.20 per dollar in 2025:

• Federal minimum wage: US$ 1,160 ≈ R$ 6,032
• Washington DC: US$ 2,800 ≈ R$ 14,560

Compared to the Brazilian minimum wage of R$ 1,518, there seems to be a gap. But this superficial analysis masks a more complex reality: the local purchasing power is drastically different.

The Real Dilemma: Living on Minimum Wage in the US

Here’s the critical point: even states with higher minimums face challenges. A worker earning US$ 1,160 per month (federal rate) faces costs that simply don’t add up:

• Basic cost of living (excluding rent): US$ 1,185
• Average rent: US$ 1,626

The math is clear: the federal minimum wage does not support a person alone in most states. Paradoxically, regions with higher wages also have the most expensive rents — California and DC offer higher minimums, but housing costs are astronomical.

Who Works for Minimum Wage?

The minimum applies mainly to:

• Restaurant and fast-food attendants
• Cashiers
• Stockers
• Cleaning aides
• Grocery store workers
• Entry-level retail positions

A special category exists for professionals who receive tips — waiters, baristas, and similar can earn a lower base salary, as tips supplement income (system known as “tipped minimum wage”).

Structural Differences: Brazil vs. the United States

The American decentralized model contrasts sharply with the Brazilian approach. While Brazil establishes a single national minimum wage revised annually by the federal government, the US operates with a hybrid system where the federal minimum coexists with multiple local minimums. This creates variable worker protections depending on geographic location.

This American fragmentation reflects a distinct political philosophy: greater state autonomy but less uniform protection. The consequence is that a minimum wage in the US fundamentally depends on where you work — making the question “how much is the minimum wage” impossible to answer with a single number.

Calculating Your Potential Income

For those planning to work in the US, the calculation is straightforward:

Weekly: Hourly wage × 40 hours
Monthly: Hourly wage × 40 × 4
Yearly: Hourly wage × 40 × 52

A worker in Boston (Massachusetts, US$ 15/h) would earn approximately US$ 2,400 per month — significantly above the federal minimum, but still insufficient for comfort in a large urban center.

What This Means in Practice

Understanding how much the minimum wage is in the US is essential for any decision to move. The decentralized system offers opportunities in high-development regions but also exposes deep regional inequalities. Purchasing power parity studies often conclude that, despite numerical differences in reais, the lived reality of a minimum wage worker in both countries is comparatively challenging — suggesting that wage guarantees alone do not solve structural cost of living issues.

For Brazilians considering the move, research must go beyond the minimum wage number: it is crucial to analyze housing, transportation, food, and healthcare costs in the specific area of interest.