How Much Do Americans Earn Per Hour? Understand the Minimum Wage in the USA in 2025

The Economic Reality of the American Minimum Wage

Unlike Brazil, which adopts a single national minimum wage, the United States operates a decentralized system where the federal government sets a minimum wage floor, but states, counties, and even cities can establish their own rates. This model creates a significant disparity: while some workers earn US$ 5.15 per hour in states like Georgia and Wyoming, others earn US$ 17.50 in Washington D.C. — more than triple.

The US federal minimum wage has been frozen at US$ 7.25 per hour since 2009. In practice, however, most states have already surpassed this mark, adopting rates between US$ 11 and US$ 16 per hour. Regions with high living costs, such as California, New York, and Washington, have implemented the most competitive minimum wages in the country to keep up with inflation.

How Much Does a Worker Earn Monthly?

Since the American system calculates pay by the hour, the monthly amount varies according to working hours. Using a standard 40-hour workweek as a basis:

Applying the formula wage/h × 40 hours × 4 weeks, a worker at the federal minimum wage would have an approximate monthly income of US$ 1,160. In states with higher minimum wages, this amount increases significantly:

• California: US$ 16.50/h → US$ 2,640/month
• Washington: US$ 16.66/h → US$ 2,666/month
• District of Columbia: US$ 17.50/h → US$ 2,800/month

Who Is Eligible for the Minimum Wage?

American legislation stipulates that workers aged 14 and above are protected by the minimum wage law, with some important exceptions. Apprentices, interns, and professionals whose primary income comes from tips (such as waiters) may receive reduced amounts.

The sectors that employ the most minimum wage workers include:

• Restaurant attendants and cashiers
• Retail cashiers
• Stock and replenishment staff
• Cleaning and maintenance helpers
• Supermarket employees

Detailed Map: Minimum Wage by State in 2025

Regions with the Highest Minimum Wages

New York: The state adopts US$ 15.50/h, with variation up to US$ 16.50/h in New York City and surrounding areas, reflecting the high metropolitan cost.

California: Established at US$ 16.50/h with overtime rules — hours over 8 per day are paid at 1.5x, and hours over 12 are paid double.

Washington: Implemented at US$ 16.66/h, recognizing inflationary pressures mainly in Seattle.

District of Columbia: Leads with US$ 17.50/h, the highest among all American jurisdictions.

States with Lower Minimum Wages

Georgia and Wyoming still maintain US$ 5.15/h in their legal records, but federal law states that the higher value between the state and federal must prevail, resulting in US$ 7.25/h in practice.

Conversion to Real and Comparison with Brazil

Using an approximate exchange rate of US$ 1 = R$ 5.20 in 2025, the scenario becomes more tangible for Brazilians:

American Federal Minimum Wage:

• Per hour: US$ 7.25 ≈ R$ 37.70
• Weekly (40h): US$ 290 ≈ R$ 1,508
• Monthly: US$ 1,160 ≈ R$ 6,032

Washington D.C.:

• Monthly: US$ 2,800 ≈ R$ 14,560

Compared to Brazil, where the minimum wage in 2025 is R$ 1,518, a fundamental question arises: the direct conversion suggests that the American equivalent is approximately four times higher in reais. However, this superficial analysis ignores the relative purchasing power in each country.

The Truth About Purchasing Power

The Purchasing Power Parity (PPP) metric offers a more realistic perspective. One US dollar buys fewer goods and services in the US than the equivalent amount in reais can purchase in Brazil. Additionally, the cost of living in the US is substantially higher.

While Brazil maintains a uniform national minimum wage set by the federal government, the US allows each state to establish its own minimum. This decentralization results in enormous regional variations that reflect local economic realities.

Is It Possible to Live on the Minimum Wage in the US?

The predominant answer is no. Even working 40 hours a week, the federal minimum leaves a significant budget deficit. Average monthly expenses are approximately:

• Basic cost of living (excluding housing): US$ 1,185
• National average rent: US$ 1,626
• Total: US$ 2,811

With an income of only US$ 1,160, there is a shortfall of about US$ 1,650 per month. Even in states with higher minimum wages, such as California or D.C., rents increase proportionally, maintaining the subsistence challenge.

Final Overview

The minimum wage system in the United States remains fragmented and complex. While the federal rate has been stagnant for over a decade, progressive states continue to implement adjustments to reflect current inflationary pressures. For Brazilians considering working or studying in the country, researching not only the state wage but also the specific regional costs is absolutely essential for making informed decisions.

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