Understand the value of the minimum wage in the United States in 2025 and how it varies by region

Many Brazilians who dream of working or studying in the USA face a fundamental question: what is the minimum wage in the United States? The answer is not as simple as it seems. Unlike Brazil, which adopts a single national minimum wage, the American system is decentralized — each state, county, and even city can set its own minimum wage.

The complex structure of the American minimum wage

The federal minimum wage in the United States is US$ 7.25 per hour, a rate that has remained frozen since 2009. However, this is only the national minimum floor. In practice, most states have surpassed this amount years ago. While some still adhere only to the federal rate, others like California, New York, and Washington DC already adopt minimum wages between US$ 15.50 and US$ 17.50 per hour — more than double the federal rate.

Do you know why? Because the cost of living has skyrocketed in major metropolises, and wages needed to keep up with inflation.

Hourly: how does the calculation work

To understand how much an American worker earns, it is crucial to master basic US math: everything is calculated per hour worked.

Considering the federal minimum of US$ 7.25/h with a standard 40-hour workweek:

7.25 × 40 hours × 4 weeks = US$ 1,160 monthly

This would be approximately R$ 6,032 (using the 2025 exchange rate of around R$ 5.20 per dollar). In Washington DC, where the highest minimum wage in the country is US$ 17.50/h, a worker would earn about US$ 2,800 per month — impressive R$ 14,560.

Who actually receives these amounts?

The minimum wage in the United States applies to a specific category of workers: those over 14 years old, in regular employment, who are not apprentices or interns. Professionals relying on tips — such as waiters and bar attendants — can receive a lower base salary, as tips supplement official income.

The sectors that employ the most in this wage range are: retail (cashiers, stockers), fast-food (service attendants), supermarkets, and entry-level administrative roles.

The highest and lowest minimum wages by state

Regional disparity is impressive. While Georgia and Wyoming maintain rates around US$ 5.15/h (where federal rules prevail), progressive states already offer much more:

At the top of the list:

• District of Columbia (Washington DC): US$ 17.50/h — the national record
• Washington: US$ 16.66/h — reflecting the high cost in Seattle
• California: US$ 16.50/h, with overtime regime (1.5x after 8 hours daily, 2x after 12h)
• New York: US$ 15.50/h (up to US$ 16.50/h in New York City)

At the bottom:

• Georgia and Wyoming: US$ 5.15/h (rarely applied in practice)
• Various conservative states: between US$ 7.25 and US$ 8.50/h

Comparison with Brazil: beyond the numbers

When converting the American minimum wage to reais, the initial impression is of a significant advantage. However, this superficial analysis ignores purchasing power parity. One dollar in the US buys significantly fewer goods and services than the equivalent converted to reais in Brazil.

Brazil offers a national floor of R$ 1,518 in 2025 — a centralized and unique strategy. The US operates a hybrid system where regional inequality is structural. Someone earning US$ 7.25/h in a rural state has a completely different purchasing power than someone earning US$ 17.50/h in Washington DC.

Is it possible to live on minimum wage in the US?

The honest answer is: in most cases, no. Even working 40 hours a week, the federal minimum of US$ 1,160/month does not cover basic expenses. The average cost of living in the US (excluding rent) is around US$ 1,185/month, while average rent is US$ 1,626/month. The numbers simply don’t add up.

Paradoxically, states that offer better minimum wages — such as California and DC — also have the most astronomical rents in the country. San Francisco, Los Angeles, New York, and Seattle are among the most expensive cities in the world.

What is the minimum wage in the United States for you?

The answer depends entirely on where you plan to work. Researching not only the state minimum but also the cost of living, rent, and local economy is essential before making any decision about moving or employment in the US.

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