Understand how the minimum wage works in the USA and regional disparities in 2025

Many Brazilians who dream of working in the United States wonder how the US minimum wage is established and what the actual wage floor is. The answer is not simple, because unlike Brazil — which has a single nationally defined value updated annually — the American system operates in a decentralized manner.

The federal minimum wage set at US$ 7.25 per hour has remained frozen since 2009. However, this figure represents only the base floor. States, counties, and municipalities have the autonomy to set their own levels, creating a complex mosaic where workers in different regions receive quite disparate amounts.

The Reality of Minimum Wages by Jurisdiction

While Washington D.C. offers the highest minimum wage in the US — US$ 17.50 per hour — regions like Georgia and Wyoming remain technically at US$ 5.15. In practice, the federal floor prevails in these cases. More developed states with a high cost of living, such as California (US$ 16.50/h), Washington (US$ 16.66/h), and New York (US$ 15.50 to US$ 16.50/h depending on the locality), have already adopted significantly higher values.

Converting Hours into Monthly Earnings

Since wages in the US are calculated per hour — unlike the Brazilian approach — it is essential to understand how to arrive at the monthly amount. The formula is straightforward:

Hourly wage × 40 hours per week × 4 weeks = approximate monthly earnings

With the federal minimum: US$ 7.25 × 40 × 4 = US$ 1,160/month

In Washington D.C.: US$ 17.50 × 40 × 4 = US$ 2,800/month

Converting to reais (using an exchange rate close to R$ 5.20 per dollar) results in approximately R$ 6,032 for the federal and R$ 14,560 for D.C.

Who Actually Receives These Amounts?

The US minimum wage applies to:

• Workers aged 14 and above
• Employees under regular working hours
• Professionals who are not apprentices or interns
• Employees whose tips do not constitute a significant part of their salary

Cashiers, restaurant and supermarket attendants, store operators, and cleaning aides make up the main contingent. Professionals who work with tips often receive lower base wages, as voluntary contributions supplement their earnings.

Comparison with Brazil: Purchasing Power vs. Nominal Values

A purely nominal analysis shows the US minimum wage in reais as higher than the Brazilian one. However, this superficial comparison ignores structural economic realities.

Purchasing Power Parity (PPP) reveals that one dollar in the US buys fewer goods and services than the equivalent amount of reais in Brazil. Therefore, the numerical advantage does not proportionally translate into an increased quality of life.

Additionally, Brazil maintains a centralized model with a single national floor, while the US fragments the definition among the federation, states, and municipalities — creating regional disparities that do not exist in the Brazilian scenario.

Is It Possible to Live on the US Minimum Wage?

The practical answer is no in most scenarios. With US$ 1,160 monthly (federal floor), after deducting basic expenses of US$ 1,185 and an average rent of US$ 1,626, the deficit is evident.

Even in states with higher minimum wages, such as California or Washington D.C., housing costs proportionally follow wage adjustments, making the equation challenging for those relying solely on these earnings.

Brazilian professionals interested in relocation should research not only the applicable state minimum but also investigate cost of living structures, housing expenses, and opportunities for career progression in the desired region.