How much do you really earn with the US minimum wage per month? A comparison with Brazil that might surprise you

If you dream of working in the United States, one question probably already popped into your head: what is the actual minimum wage in the US per month? The answer? More complicated than it seems. While Brazil maintains a single value nationwide, the US operates as a mosaic of legislations. The federal minimum wage in the US is US$ 7.25 per hour — stagnant since 2009 — but states, cities, and even counties set their own minimums, creating a variation from US$ 5.15 to an impressive US$ 17.50 per hour.

The gap between theory and practice: US minimum wage vs Brazil

It seems simple to convert US$ 7.25 into reais and celebrate the difference. But it’s not quite that straightforward. Considering an approximate exchange rate of US$ 1 = R$ 5.20 in 2025, the US federal minimum would amount to about R$ 6,032 per month — nearly four times the Brazilian minimum of R$ 1,518. Impressive, right? Wrong.

The trick lies in what economists call purchasing power. One dollar in the US buys fewer goods and services than the equivalent real in Brazil. Additionally, while a Brazilian worker faces rent, food, and transportation costs, their American counterpart deals with disproportionately higher expenses. In the US, spending US$ 1,185 just on basic expenses (excluding rent) is the reality for many. Adding an average rent of US$ 1,626, you understand why the federal minimum wage is considered insufficient even by Americans themselves.

How does the US minimum wage per month work in different regions

The American system is decentralized and fragmented. While the federal government sets US$ 7.25 as the national floor, states like California, Washington, and New York already exceed US$ 16 per hour. Progressive cities like Washington D.C. lead with US$ 17.50 — the highest in the country.

The calculation of the monthly salary is linear: multiply the hourly rate by 40 hours a week by approximately 4 weeks. For the federal minimum:

7.25 × 40 × 4 = US$ 1,160/month

But in Washington D.C., the same calculation results in US$ 2,800 per month. The difference? It’s not just nominal — the cost of living in D.C. is also astronomically higher.

States that pay better (and worse)

National leaders:

• District of Columbia: US$ 17.50/h (US$ 2,800/month)
• Washington: US$ 16.66/h (about US$ 2,664/month)
• California: US$ 16.50/h (US$ 2,640/month)
• New York: US$ 15.50-16.50/h depending on region (US$ 2,480-2,640/month)

Lowest floors:

• Georgia and Wyoming: US$ 5.15/h (theoretically, but the federal US$ 7.25 prevails in practice)

The reality? Many Southern and Midwest states maintain the federal minimum, while coastal states and prosperous cities compete to attract labor with significantly higher wages.

Who earns (and how much they really make)

The minimum wage applies to regular workers from age 14 — except for apprentices, interns, and professionals who depend on tips as their main compensation. Cashiers, stockers, fast-food attendants, and cleaning aides are the most affected by these legislations.

An important nuance: waiters and other frontline professionals receive a significantly lower base salary (sometimes US$ 2-3 per hour), compensated by the expectation of tips. This practice is legal in the US but controversial.

Can you live on the US minimum wage per month?

The direct answer from economists and the American reality is no. Even in states with higher minimums, the minimum wage mainly covers basic expenses, leaving little for emergencies, savings, or quality of life.

In Washington D.C., despite the US$ 17.50/h floor, the average rent for a one-bedroom apartment exceeds US$ 2,000. In California, wages of US$ 16.50/h coexist with rents of US$ 2,500+ in Los Angeles and San Francisco.

Brazilian considering moving should research not only the state minimum but also:

• Rent in the desired area
• Local transportation and food costs
• State and federal taxes
• Healthcare and education costs

The American model vs the Brazilian: why so different?

The US adopts economic federalism — each state decides its own minimum, reflecting local dynamics. Brazil, centralized, sets a single national value. This difference creates opposite realities: while Brazilians face the same minimum in São Paulo and small towns in the Northeast, Americans in San Francisco live in completely different realities from colleagues in rural Mississippi.

This fragmentation is intentional in the US, allowing local labor markets to determine their own values. But for those seeking predictability and comparison, the question “what is the minimum wage in the US per month?” becomes much more complex than a simple numeric answer.