American minimum wage in 2025: find out how much a worker earns by state

A completely different system from Brazil

Many Brazilians who dream of working in the United States face a surprising reality: there is no single national minimum wage. While Brazil adopts a unified floor set by the federal government, the US operates in a decentralized manner. The federal government has set a minimum of US$ 7.25 per hour since 2009, but each state has the autonomy to set its own rates — and many have done so years ago.

This fragmentation creates a very peculiar economic scenario. Depending on where you work, your income can vary drastically: from the federal minimum of US$ 7.25 to US$ 17.50 per hour in the District of Columbia, creating a difference of over 140% between the lowest and highest values in the country.

How much does it earn monthly? The numbers that matter

Since in the US compensation is calculated per hour, the monthly salary varies quite a bit depending on the workload and location. Considering a standard 40-hour workweek:

At the federal minimum (US$ 7.25/h):

• Weekly: US$ 290
• Monthly: approximately US$ 1,160

But this is not the reality in many states. Here are some practical examples:

District of Columbia (the largest in the country):

• Hourly: US$ 17.50
• Monthly: US$ 2,800

California:

• Hourly: US$ 16.50
• Monthly: approximately US$ 2,640

Washington:

• Hourly: US$ 16.66
• Monthly: approximately US$ 2,666

New York:

• Hourly: US$ 15.50 to US$ 16.50
• Monthly: between US$ 2,480 and US$ 2,640

Regional disparities directly reflect the cost of living in each area. Cities like Los Angeles, Seattle, and Manhattan face significantly higher housing and subsistence expenses, justifying higher minimum wages.

Who works with this salary?

The minimum wage mainly applies to:

• Retail cashiers
• Restaurant and fast-food attendants
• Stockers
• Cleaning staff
• Supermarket assistants
• Entry-level operational positions

An important caveat: workers who receive tips, such as waiters, can earn significantly lower base wages, compensated by tips. This model creates a unique salary dynamic in the American service sector.

Conversion to reais: the reality of purchasing power

Using the approximate exchange rate of 2025 (US$ 1 = R$ 5.20), the minimum wage in the United States per month in reais would be:

Federal minimum:

• US$ 1,160 ≈ R$ 6,032

District of Columbia:

• US$ 2,800 ≈ R$ 14,560

At first glance, these numbers seem extremely advantageous compared to the Brazilian minimum wage of R$ 1,518. However, direct conversion analysis is misleading. What truly matters is the local purchasing power.

The trap of direct conversion

In the US, despite the amounts in reais being much higher, the reality of the cost of living reveals a more complex scenario:

• A basic meal in New York or Los Angeles costs between US$ 15 and US$ 25
• Renting a modest apartment in a metropolitan area ranges from US$ 1,500 to US$ 2,500
• Monthly transportation (Metro pass): US$ 85 to US$ 115

Combining essential expenses (rent, food, transportation, healthcare), the monthly budget easily reaches or exceeds US$ 2,000, making the federal minimum wage insufficient in practically any major city.

Can you live on the minimum wage in the US?

The answer is complex and geographically dependent. In states with higher wages (California, New York, Washington DC), the minimum wage offers a better margin, although expenses are also proportionally higher. In states with a moderate cost of living, workers earn the lowest federal rate, leaving almost no financial margin.

Most economists agree: the US federal minimum wage, frozen since 2009, does not keep pace with inflation. Progressive states and cities have responded with periodic increases, but the decentralization of the system maintains significant regional inequalities.

The decentralized structure: advantage or problem?

The American model allows regions to adjust wages according to local economic realities, which is theoretically more flexible. In practice, however, it creates fragmentation: someone can earn US$ 7.25 in a rural state and US$ 17.50 a few hours away in a metropolis.

For Brazilians considering moving to the US, the message is clear: don’t just look at the dollar amount. Research the specific cost of living in the city, the opportunities for salary progression (most jobs pay above minimum with experience), and the quality of life offered by the region before making a decision.

The minimum wage in the US per month is just the starting point — the financial journey in the US is built well beyond this floor.