How much do you really earn with a salary in the United States? Complete Guide 2025

Many Brazilians dream of working in the USA, but a fundamental question persists: what is the actual minimum wage there, and how does it impact real life? The answer is not as simple as it seems because wages in the United States vary dramatically depending on where you work.

The decentralized system: understanding the structure

Unlike Brazil, which adopts a single national minimum wage set annually, the United States operates with a complex hybrid model. The federal government sets a minimum wage of US$ 7.25 per hour — frozen since 2009 — but this is only the floor. States, counties, and even cities have autonomy to set their own rates.

This decentralization has created a fragmented scenario: while some states maintain the federal minimum of US$ 7.25/h, others like the District of Columbia reach US$ 17.50/h. In intermediate states like California and New York, the floor fluctuates between US$ 15.50 and US$ 16.50 per hour.

Conversion to reais: the dollar in the account

For Brazilians, the first reaction is to convert to reais. With an approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

Converted salary scenarios in the United States:

• Federal floor (US$ 7.25/h) = R$ 37.70 per hour
• Standard week (40h) = US$ 290 ≈ R$ 1,508
• Monthly (4 weeks) = US$ 1,160 ≈ R$ 6,032

In Washington D.C., where the minimum wage is US$ 17.50/h:

• Monthly: US$ 2,800 ≈ R$ 14,560

At first glance, it seems that wages in the United States offer much more purchasing power. But this superficial analysis ignores the brutal cost of living on the other side of the Atlantic.

Unveiling the real purchasing power

A simplistic comparison between nominal values is misleading. While in Brazil the minimum wage of R$ 1,518 is considered insufficient in capital cities, in the USA the situation is even more critical.

Average monthly expenses in the USA:

• Basic cost of living (without rent): US$ 1,185
• Average rent: US$ 1,626
• Total: US$ 2,811

With a federal minimum wage of US$ 1,160, the mathematical equation is impossible. Even in states with higher wages, like California or New York, rents are proportionally so high that the financial safety margin remains minimal.

Experts use a metric called Purchasing Power Parity (PPP) for fairer analyses. Through this lens, one dollar in the USA buys fewer goods and services than the equivalent in reais in Brazil — meaning that the absolute difference in reais does not translate linearly into a higher quality of life.

Who actually earns minimum wage?

The minimum wage in the United States applies to workers:

• Aged 14 and above
• In regular employment
• Who are not apprentices or interns
• Without tips as primary income

The most common professions include restaurant attendants, cashiers, stockers, cleaning aides, and supermarket employees. An important caveat: workers who receive tips (waiters, baristas) may earn a lower base salary, as tips supplement the remuneration.

State-by-state overview: where is the minimum wage more attractive in the USA

The extremes

Highest wage: District of Columbia with US$ 17.50/h

• Monthly: US$ 2,800
• But average rent also exceeds US$ 2,500

Competitive states:

• Washington: US$ 16.66/h (high cost of living)
• California: US$ 16.50/h + overtime at 1.5x after 8 hours daily
• New York: US$ 15.50/h in the state, US$ 16.50/h in the city
• Massachusetts: US$ 15/h

Lower values:

• Georgia and Wyoming: US$ 5.15/h (however, the federal floor of US$ 7.25 prevails for most roles)
• Alabama, Louisiana, Mississippi, South Carolina: adopt only the federal US$ 7.25/h

Practical calculations: building your budget

The American system simplifies calculations because everything is based on hours:

Weekly: wage/hour × 40h

• Example federal: 7.25 × 40 = US$ 290

Monthly: wage/hour × 40 × 4

• Example federal: 7.25 × 40 × 4 = US$ 1,160
• Example Washington D.C.: 17.50 × 40 × 4 = US$ 2,800

States with higher wages can exceed US$ 2,500/month, but this still leaves limited margin after essential expenses in metropolises.

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

The predominant answer is no. Neither the federal floor nor many state wages adequately cover basic costs. Cities with high living costs — New York, Los Angeles, Seattle — have created their own minimum wages, but these simply keep pace (and barely manage) local inflation.

For Brazilians considering moving, wages in the USA are just one variable. Researching not only the state minimum but also rent, transportation, healthcare, and food costs in the specific region is essential. What works in small Midwestern towns can be completely unsustainable in urban centers.

The decentralized reality

Wages in the USA remain a complex and fragmented topic. While the federal minimum has been frozen since 2009, states and cities approve incremental increases to try to keep up with inflation and local economic realities. This decentralized approach creates opportunities in some regions and challenges in others.

The lesson for Brazilians: never evaluate American opportunities solely by the nominal wage. The regional context — cost of living, job availability, benefits offered — determines the actual viability.