Understand the Minimum Wage System in the USA: 2025 Guide for Brazilians

Many Brazilians who dream of working or living in the United States become confused when they discover that the minimum wage system there works completely differently from Brazil. While our country maintains a single national value, the American reality is much more fragmented: each state, municipality, and even some cities can set their own wage levels. This decentralization creates a scenario where workers earn from US$ 7.25 to US$ 17.50 per hour — a difference that can significantly impact quality of life.

The U.S. Federal Minimum Wage and State Autonomy

The federal minimum wage in the US has remained fixed at US$ 7.25 per hour since 2009. This amount serves as a protection ceiling — no worker can earn less, in theory. However, many states have decided to go beyond this figure, especially those with higher living costs. Currently, states like California, Washington, New York, and the District of Columbia already adopt significantly higher levels, ranging between US$ 15.50 and US$ 17.50 per hour.

The logic behind this state autonomy reflects the economic reality of each region. Cities like San Francisco, Seattle, and Manhattan face housing, food, and transportation costs that make the federal wage completely unviable for a decent life.

How Much Is Really Earned Per Month?

The American calculation is fundamentally different from the Brazilian one. Instead of receiving a fixed monthly salary, workers accumulate their earnings based on hours worked. Using the federal minimum wage as a reference:

A standard 40-hour workweek over 4 weeks results in: 7.25 × 40 × 4 = US$ 1,160 monthly

This is what a worker with the federal minimum wage would earn in a month. Converting to reais (considering an exchange rate of approximately R$ 5.20 per dollar in 2025): about R$ 6,032.

However, in regions with a higher minimum wage, the scenario is quite different:

• Washington D.C. with US$ 17.50/h: approximately US$ 2,800 monthly (R$ 14,560)
• California with US$ 16.50/h: about US$ 2,640 monthly (R$ 13,728)
• Washington with US$ 16.66/h: around US$ 2,666 monthly (R$ 13,863)

Who Actually Receives the Minimum Wage?

The American minimum wage applies to a specific category of workers:

• Professionals aged 14 and older
• Hired for regular and continuous shifts
• Excluding formal apprentices and interns
• Professions that do not primarily depend on tips

The sectors that employ most people under these conditions include retail, food service, cleaning, and customer service. Cashiers, stockers, supermarket assistants, and cleaning staff make up the majority of these workers.

An important peculiarity: waiters, baristas, and professionals who receive tips may have a reduced base salary, as tips supplement their income. This controversial model remains legal in virtually all states.

Regional Disparities: The Minimum Wage Map in 2025

The variation between states is dramatic. While Wyoming and Georgia technically maintain US$ 5.15/h, the federal minimum prevails in most legal situations. On the other hand, progressive states have set new benchmarks:

Northeast and Central Regions: Many states keep the federal minimum of US$ 7.25/h

West Region: California, Washington, Oregon, and Nevada lead with values between US$ 16 and US$ 17/h

Northeast: New York and the District of Columbia have the highest levels in the country, above US$ 17/h

Southeast: Mainly the federal minimum, with some exceptions in metropolitan areas

The Financial Feasibility of Living on Minimum Wage

Here lies the most critical question: is it possible to live on minimum wage in the US? The honest answer is no, in most cases.

Data from 2025 show that the basic cost of living — excluding rent — is around US$ 1,185 per month. The national average rent is US$ 1,626. Adding up: US$ 2,811 versus US$ 1,160 from the federal minimum wage.

Even in states with higher minimum wages, the equation remains complicated. When the minimum wage rises to US$ 16 or US$ 17 per hour, rents in the same cities also skyrocket — often exceeding US$ 2,000 in areas like San Francisco, Los Angeles, or Manhattan.

Comparison with Brazil: Different Realities

Superficially, the American minimum wage seems much more attractive. The federal floor of US$ 1,160 converted results in approximately R$ 6,032 — a higher amount than the Brazilian minimum of R$ 1,518.

However, this linear comparison is misleading. The true indicator is the relative purchasing power in each country. One dollar in the US, in terms of goods and services, buys proportionally less than the equivalent in reais in Brazil.

Additionally, the structure is fundamentally different:

• Brazil: single minimum wage, defined federally, applicable nationwide
• US: hybrid system with federal, state, and municipal minimum wages, creating huge regional variation

A worker in Des Moines, Iowa earns US$ 7.25/h. Another in Seattle, Washington earns US$ 16.66/h. This disparity does not exist in Brazil.

Practical Aspects for Those Planning to Work in the US

Before making any decision about working or moving to the US, research:

1. The specific minimum wage of the state and city where you plan to reside
2. The actual cost of living in that region (rent is the most critical factor)
3. Benefits beyond salary (health insurance, vacations, bonuses)
4. The feasibility of a dignified life with that amount
5. Opportunities for career and salary progression in the chosen sector

The US minimum wage system reflects the country’s economic diversity. While it has been frozen at the federal level for over a decade, states and municipalities have advanced in adjustments that recognize local realities. For Brazilians, the conclusion is clear: destination matters as much as the nominal salary.