Remuneration Structure in the US 2025: Regional Disparities and Economic Impact

Understanding the American wage dynamics is essential for those planning to work in the United States. Unlike Brazil, which adopts a single minimum wage nationwide, the U.S. compensation system operates in a decentralized manner. The federal minimum established at US$ 7.25 per hour has remained a reference since 2009, but states, municipalities, and even counties have the autonomy to set their own levels, resulting in variations that reach up to US$ 17.50 in some jurisdictions.

Why Is There Such a Wide Variation in Minimum Wages?

The significant disparity between regions reflects substantial differences in the cost of living. Metropolises like New York, Los Angeles, and Seattle face housing and operational expenses far higher than the rest of the country. Therefore, they set their own minimum wages—generally between US$ 15 and US$ 17.50 per hour—while less urban states maintain values close to the federal US$ 7.25.

Current Mapping of Minimum Wage by Region

Highest Levels:

• District of Columbia (Washington D.C.): US$ 17.50/h — the highest value in the country
• Washington: US$ 16.66/h — reflecting high regional costs
• California: US$ 16.50/h — with differentiated rules for overtime
• New York: US$ 15.50/h at the state level, reaching US$ 16.50/h in more expensive areas

Lower Levels:

• Georgia and Wyoming: US$ 5.15/h — but in practice, the federal minimum of US$ 7.25 prevails for most hires

Salary Conversion: How Much Does a Worker Earn at Minimum Wage?

The compensation calculation in the U.S. follows an hourly logic. For a standard 40-hour workweek:

Based on the Federal Minimum (US$ 7.25/h):

• Weekly: US$ 290
• Monthly (4 weeks): US$ 1,160

In Washington D.C. (US$ 17.50/h):

• Weekly: US$ 700
• Monthly: US$ 2,800

Converting to Brazilian reais (using an approximate exchange rate of US$ 1 = R$ 5.20) reveals:

• Federal minimum: approximately R$ 6,032/month
• Washington D.C.: about R$ 14,560/month

Who Receives This Amount?

The U.S. minimum wage applies to workers regularly hired from age 14, excluding apprentices, interns, and professionals whose main income comes from tips. The most common occupations are: food service attendants, cashiers, stock clerks, and general assistants.

Important note: Professionals who receive tips (waiters, for example) may earn a lower base salary, as tips supplement income.

Brazil × USA Comparison: Beyond the Numbers

Although direct conversion suggests that the American salary is four times higher than the Brazilian (US$ 1,160 ≈ R$ 6,032 versus R$ 1,518 in Brazil), this analysis is superficial. Purchasing power in each country varies significantly.

A salary of US$ 1,160 in the U.S. is insufficient to cover basic expenses in most states. Monthly costs include approximately US$ 1,185 in essential expenses (excluding rent) and US$ 1,626 in average rent — amounts that exceed the federal minimum wage itself.

The Purchasing Power Parity (PPP) reveals that one dollar in the U.S. buys fewer goods and services than the equivalent in reais in Brazil. Therefore, the absolute disparity does not translate into proportional quality of life.

Is It Feasible to Live Only on Minimum Wage?

In most cases, no. Even working 40 hours a week, the federal minimum leaves a considerable budget deficit. Only in regions with high minimum wages (California, New York, D.C.) is there room for subsistence, but these same areas have the highest housing costs in the country, negating the advantage.

The U.S. Labor Market Dynamics in 2025

The decentralized minimum wage system in the U.S. continues to evolve. While the federal minimum has been frozen since 2009, states and municipalities periodically approve increases to keep up with inflation. For Brazilians considering relocation or remote work, researching not only the state salary but also the specific cost of living in the region is absolutely necessary before any decision.