What is the Minimum Wage in the United States? Complete Guide 2025

Understanding how much a minimum wage is in the United States is essential for those planning to move to the country. Unlike Brazil, which adopts a single national minimum wage, the American system operates in a decentralized manner: there is a federal minimum, but each state, county, and even city can set its own rules. The result? Workers can earn from US$ 7.25 up to US$ 17.50 per hour, depending on where they live.

The American Minimum Wage System: How It Works

The federal minimum has remained at US$ 7.25 per hour since 2009 — a figure that has sparked intense debate about its adequacy relative to the cost of living. However, this number only represents the legal floor. In practice, states and municipalities have long surpassed this mark.

Approximately 30 states adopt rates between US$ 11 and US$ 16 per hour. Regions with high living costs such as Los Angeles, New York, and Seattle have implemented their own minimum wages significantly higher than the federal, directly reflecting the local economic reality.

What is the disparity? The difference between the lowest minimum (US$ 5.15 in Georgia and Wyoming, although the federal prevails), and the highest (US$ 17.50 in Washington D.C.) reaches 240% — a colossal variation that reflects regional inequalities in America.

How Much Is a Minimum Wage in the United States in Monthly Terms?

Since American compensation is based on hours worked, the monthly calculation depends on the standard weekly work schedule:

Federal calculation (US$ 7.25/hour):

• 40 hours weekly × 4 weeks = US$ 1,160 monthly

Calculation in regions with higher minimum wages:

• Washington D.C. (US$ 17.50/h): US$ 2,800 monthly
• California (US$ 16.50/h): US$ 2,640 monthly
• New York (US$ 16.50/h in NYC): US$ 2,640 monthly

Converting to Brazilian real (approximate exchange rate US$ 1 = R$ 5.20):

• Federal minimum: US$ 1,160 ≈ R$ 6,032
• Washington D.C.: US$ 2,800 ≈ R$ 14,560

The initial impression is of a significant difference compared to the Brazilian minimum wage (R$ 1,518). However, this superficial analysis ignores a critical factor: relative purchasing power.

Comparison with Brazil: Beyond Simple Conversion

Many make the mistake of comparing values solely by converting dollars to reais. Proper analysis requires considering the Purchasing Power Parity (PPP) — a metric that reveals how much each currency actually buys in its own country.

One dollar in the US buys fewer goods and services than the equivalent in reais in Brazil. This means that US$ 1,160 does not translate into four times better quality of life for a Brazilian.

Divergent definition models:

• Brazil: single minimum wage, set annually by the federal government
• US: hybrid system with federal minimum + state minimums + municipal minimums

This American decentralization creates opportunities for those moving to wealthy states but also traps for those heading to poorer regions.

How Much Is a Minimum Wage in the United States by State: 2025 Outlook

Highest Minimum Wages

Washington D.C. — US$ 17.50/h(highest in the country) Reflects the extremely high cost of the federal capital

Washington — US$ 16.66/h One of the highest, following Seattle’s inflation

California — US$ 16.50/h With special rules: overtime after 8h/day = 1.5x; after 12h/day = 2x

Massachusetts — US$ 15.00/h High-cost region on the east coast

New York — US$ 15.50/h (state); US$ 16.50/h (NYC and larger counties) Regional discrimination within the state itself

###Lower Minimum Wages

Georgia and Wyoming — US$ 5.15/h Formally below the federal, but in practice, the US$ 7.25 minimum prevails for most jobs

Louisiana, Mississippi, Alabama, and South Carolina — US$ 7.25/h Only adopt the federal minimum

Who Earns Minimum Wage in the US?

The minimum wage applies to:

• Workers aged 14 and older
• Employees on regular shifts
• Professionals without tip benefits as primary income
• Non-apprentices or non-interns

Jobs that most often earn this amount:

• Restaurant and fast-food chain attendants
• Point-of-sale operators
• Stockers and warehouse helpers
• Cleaning crews
• Grocery store employees
• Entry-level operational roles

Important note: Professionals relying on tips (like waiters) may receive a lower base, compensated by customer gratuities.

How Much Is a Minimum Wage in the United States? The Sustainability Question

The straightforward answer: in most situations, it is insufficient.

Even working 40 hours a week, the federal minimum of US$ 1,160 does not cover basic expenses:

Average monthly costs:

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

With US$ 1,160, there is a shortfall of US$ 1,651 per month — an economically unsustainable situation without additional income or social support.

States with higher minimum wages (California, D.C., New York) offer higher salaries but also have the highest rents in the country — often US$ 2,000 to US$ 3,500 for modest housing.

Simplified Calculation Formula

Per week: