Understand the US minimum wage system 2025: from federal to regional floors

2026-02-24 11:08:05

For Brazilians considering a move to the United States, one of the main questions is about compensation. Many people arrive expecting to find a system similar to Brazil’s, but the US minimum wage in 2025 operates in a completely decentralized way. While Brazil has a single national minimum wage, the US has a hybrid system where a federal minimum of $7.25 per hour coexists with state and local policies, creating significant regional disparities ranging from $7.25 to $17.50 per hour.

This guide provides a comprehensive analysis of how this complex system works, updated values for each region, and how the US minimum wage in 2025 impacts workers’ lives.

The federal minimum and state autonomy: how the US minimum wage in 2025 works

The US federal minimum wage has remained frozen for over 15 years, at $7.25 per hour since 2009. However, this amount only represents a baseline — states, counties, and even cities have full autonomy to set their own minimums, often much higher.

This decentralized structure has created a peculiar scenario: a worker can earn anywhere from $7.25 to $17.50 per hour, depending solely on where they work. Cities with high living costs — such as New York, Los Angeles, and Seattle — have adopted their own municipal minimums, usually well above the national average.

From hourly to monthly: calculating your income with the US minimum wage in 2025

Unlike Brazil, where wages are calculated monthly, in the US, compensation starts from the hourly rate. To convert this into monthly income, you need to consider the weekly working hours.

Using the federal minimum of $7.25 per hour and a standard 40-hour workweek over 4 weeks:

7.25 × 40 hours × 4 weeks = $1,160 per month

This is the minimum monthly income in the US based on the federal minimum. However, this number varies significantly depending on the location.

Practical examples of monthly income

In states where the US minimum wage in 2025 is higher, earnings show substantial differences:

Washington D.C. (the highest minimum wage in the country): $17.50/h → $2,800/month
Washington State: $16.66/h → $2,666/month
California: $16.50/h → $2,640/month
New York: $15.50/h to $16.50/h (depending on region) → $2,480 to $2,640/month

Which professions depend on the minimum wage in the US?

The minimum wage applies to workers in specific situations. The first requirement is being at least 14 years old and employed for a regular schedule. Apprentices, interns, and those whose pay includes tips as a primary component are excluded from this protection.

The segments most frequently earning the US minimum wage in 2025 include:

Restaurant and fast-food service attendants
Cashiers in retail stores
Stockers and warehouse helpers
Cleaning and sanitation staff
Supermarket employees
Entry-level operational positions

An important nuance: workers who receive tips (such as waiters) often earn a reduced base salary, as tips supplement their total compensation. This system allows the base salary to be significantly below the minimum in some cases.

The map of inequality: US minimum wage in 2025 across regions

The US minimum wage in 2025 reveals deep regional disparities. While some states maintain the federal minimum of $7.25, others have adopted values more than twice as high.

The highest minimum wages are concentrated in states with high living costs:

Highlights in regions with the highest minimum wages:

District of Columbia: $17.50/h (national record)
Washington State: $16.66/h
California: $16.50/h
New York: $15.50 to $16.50/h (varies by municipality)
Massachusetts: $15/h
Connecticut: $15.69/h

Regions with lower minimum wages:

Georgia and Wyoming: $5.15/h (officially lower, but the federal minimum of $7.25 applies in most cases)
Various Southern states: maintain the federal minimum of $7.25/h

This disparity reflects the American philosophy of leaving economic decisions to local levels, considering regional realities such as housing costs, local inflation, and labor market strength.

Doing the math: how to calculate your earnings with the US minimum wage

Compensation calculation in the American system follows simple formulas, as everything starts from the hourly base.

Weekly calculation formula

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