How Much Do Workers Earn? Understand the Minimum Wage in the United States in 2025

Many Brazilians who dream of working or residing in the United States become confused about the local compensation system. The reason is simple: while Brazil maintains a single national minimum wage, the minimum wage in the United States operates in a completely decentralized manner. The federal minimum remains at US$ 7.25 per hour since 2009, but each state has the freedom to set its own levels, creating a variation from US$ 7.25 up to US$ 17.50 depending on the geographic location.

Regional Disparity: How Much Does the Minimum Wage in the United States Vary?

The current scenario reveals vast differences. Washington D.C. leads with US$ 17.50/h, followed by Washington state with US$ 16.66/h. In California, workers earn US$ 16.50/h, while New York offers US$ 15.50/h in the state and up to US$ 16.50/h in certain counties. On the other hand, Georgia and Wyoming are at the federal minimum of US$ 5.15/h, although in practice the federal US$ 7.25 applies to most occupations.

How Much Do They Earn Per Month? Converting Hours into Monthly Salary

The calculation follows a simple logic: hourly wage multiplied by the number of hours worked. Considering the standard American workweek of 40 hours over 4 weeks:

• **What is the federal minimum wage in the United States (federal): 7.25 × 40 × 4 = US$ 1,160/month
• In Washington D.C.: 17.50 × 40 × 4 = US$ 2,800/month
• In California: 16.50 × 40 × 4 = US$ 2,640/month

Converting to reais with an approximate exchange rate of R$ 5.20 per dollar:

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

Who Benefits from This Base Compensation?

The minimum wage applies to professionals aged 14 or older, hired under regular employment, excluding apprentices and interns. The main beneficiaries are restaurant attendants, cashiers, stock clerks, cleaning assistants, and supermarket workers. An important caveat: professionals who receive tips may earn a lower base, compensated by the “tips” system.

International Comparison: USA versus Brazil

Although numerically the American minimum wage seems four times higher when converted to reais, the reality is more nuanced. The cost of living in the USA consumes almost all of this difference. Basic monthly expenses amount to around US$ 1,185, while average rent is US$ 1,626. Therefore, a federal minimum wage of only US$ 1,160 results in an immediate deficit.

In Brazil, the minimum wage was adjusted to R$ 1,518 in 2025. Although lower in reais, it offers a relatively comparable purchasing power in many regions. Experts use the concept of Purchasing Power Parity (PPC) for more precise analyses, recognizing that one dollar in the USA buys fewer goods than the equivalent in reais in Brazil.

Is It Feasible: Can You Live on This Amount?

The straightforward answer is no. Even in regions where the minimum wage in the United States reaches US$ 16 or US$ 17 per hour, the cities paying these rates — New York, Los Angeles, San Francisco — have astronomical rental costs. States with lower minimum wages make the situation even more challenging.

Complete Details by Location

States with higher levels include Massachusetts (US$ 15/h), New Jersey (US$ 15.13/h), and Connecticut (US$ 15.69/h). States like Texas, Florida, and Georgia maintain the federal US$ 7.25/h. This fragmentation requires careful research before any professional relocation decision.

Understanding the minimum wage in the United States requires a multifactorial analysis — not just the nominal value, but regional context, local cost of living, and opportunities for rapid salary progression in specific sectors.