Understand the Minimum Wage System in the United States in 2025

Many Brazilians who wish to work, study, or move to the United States face questions about how the minimum wage works there. The truth is that the American system operates very differently from Brazil. While our country maintains a single national minimum wage, the United States adopts a decentralized model where states, municipalities, and even counties set their own rules.

The Federal Pillar: US$ 7.25 per Hour

The federal minimum wage in the United States has been set at US$ 7.25 per hour since 2009 — over 15 years without adjustment. This amount functions as a national protection floor, but the reality is much more heterogeneous. Several states have already surpassed this value: many adopt ranges between US$ 11 and US$ 16 per hour, while high-cost regions like New York, California, and Seattle have implemented even higher levels.

The Disparity Between States

The minimum wage range in the United States is significant. While the District of Columbia leads with US$ 17.50 per hour, some states like Georgia and Wyoming officially allow US$ 5.15 — although in practice, the federal floor prevails in most cases.

Highlights by region:

• District of Columbia: US$ 17.50/h (highest in the country)
• Washington: US$ 16.66/h
• California: US$ 16.50/h (with overtime rules: 1.5x after 8 hours daily, 2x after 12 hours)
• New York: US$ 15.50/h in the state, reaching US$ 16.50/h in the city and surroundings

From Hour to Month: How Does the Calculation Work

The American system is based on hourly calculation. To convert the monthly amount for a standard 40-hour workweek:

Basic formula: Hourly wage × 40 hours × 4 weeks = Monthly salary

Using the federal floor: 7.25 × 40 × 4 = US$ 1,160 per month

In the District of Columbia: 17.50 × 40 × 4 = US$ 2,800 per month

States with higher minimum wages can easily surpass US$ 2,500 per month.

Converting to Reais: What Is the Reality?

With an approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

• Federal floor: US$ 1,160 ≈ R$ 6,032/month
• District of Columbia: US$ 2,800 ≈ R$ 14,560/month

At first glance, the amount in reais seems considerable. However, this superficial analysis ignores a crucial detail: the actual purchasing power in each country.

The Issue of Purchasing Power

Absolute numbers can be misleading. One dollar in the US buys fewer goods and services than the equivalent in reais in Brazil. Structurally, Brazil maintains a single national minimum wage (R$ 1,518 in 2025), while the US operates with a mosaic of federal, state, and municipal floors — a result of years of decentralized policies.

Who Receives This Amount?

The minimum wage applies to workers:

• Aged 14 and above
• Employed under regular hours
• Not in apprentice or intern roles
• Who do not primarily depend on tips

This group includes: restaurant attendants, cashiers, cleaning assistants, stock clerks, and entry-level operational roles.

Important note: Waiters and professionals who receive tips may earn a lower base salary, as tips supplement the remuneration.

Is It Possible to Live on Minimum Wage?

The answer for most cases is no. Even working 40 hours a week, the numbers don’t add up:

• Basic cost of living (excluding housing): approximately US$ 1,185/month
• Average rent: around US$ 1,626/month
• Total: US$ 2,811/month

With a federal minimum wage of only US$ 1,160, there is an evident deficit. States with higher floors (California, Washington, D.C.) offer better pay, but their rents are also among the most expensive in the country — creating a paradox of limited access.

The Overall Picture of the Minimum Wage in the United States

The US labor market remains fragmented. The federal floor has been frozen for decades, while states and cities continue to approve gradual increases to keep up with inflation and local realities. For Brazilians considering working in the US, the recommendation is to research not only the state minimum wage but also the actual expenses of the region — rent, food, transportation, healthcare — before making any migration or professional opportunity decisions.