## How much does it cost to work in the USA: unraveling the minimum wage in 2025

The minimum wage in the USA in 2025 follows a very different logic from Brazil — and this difference goes far beyond the numbers. While Brazil maintains a single national floor, Americans deal with a fragmented system where the federal amount (US$ 7.25/hour) is just the beginning of the story.

### The decentralized system that no one explains properly

Most people don’t know, but that famous federal minimum wage of US$ 7.25 per hour has been frozen since 2009. Yes, 16 years without adjustment. The truth is that it functions more as an absolute minimum floor — several states and cities have already surpassed it significantly.

If you look at the map of the USA, you find wages from Texas and Wyoming (US$ 5.15/h, but in practice, the federal rate prevails) up to Washington D.C., leading with US$ 17.50/h. California, known for its absurd costs, offers US$ 16.50/h. New York also hovers around US$ 15.50/h to US$ 16.50/h depending on the region.

What is a minimum wage in the US when converted to monthly work? With 40 hours per week:
- Federal: US$ 1,160/month
- Washington D.C.: US$ 2,800/month
- California: US$ 2,640/month

The difference is striking.

### Who earns this amount and how does it work in practice

The minimum wage in the USA basically applies to:
- Minors from age 14
- Operations staff (cashiers, stock, cleaning)
- Restaurant and retail attendants
- Those who do not receive tips as part of their compensation

An important detail: waiters and service staff who live off tips can earn less per hour (sometimes much less), because tips supplement their income. In some states, this base wage is around US$ 2-3/hour.

### The reality check: from theory to real life

Here’s the problem: how much is a minimum wage in the USA really enough? Frank answer: almost never.

Just look at these 2025 numbers:
- Basic cost of living (excluding rent): US$ 1,185/month
- National average rent: US$ 1,626/month

Adding up: US$ 2,811/month just for the basics.

Worker earning US$ 1,160 (federal floor)? It doesn’t add up. They are US$ 1,651 below what’s needed each month. That’s why many work two jobs or look for states with higher floors.

Even in D.C. with its US$ 2,800, rent there is among the most expensive — so technically, the problem persists, just at another level.

### Comparing Brazil and the USA: more than numbers

In 2025, the American minimum monthly (US$ 1,160) converted to reais is approximately R$ 6,032 — well above the Brazilian R$ 1,518. At first glance, it seems Americans earn 4x more.

But wait. Purchasing power doesn’t work that way. One dollar in the USA buys fewer goods and services than R$ 5.20 here in Brazil. American inflation is at a different level, especially in rent and healthcare.

If you compare the two currencies by purchasing power parity (a metric used by experts), the difference shrinks considerably. Americans have more money in absolute numbers, but they also spend more on everything.

Additionally, Brazil has a centralized model (a number applies to the entire country) while the USA has the complexity of 50 states with different rules. Salary research in the USA? Never rely on just the number — also research the region and local cost of living.

### Highlights by the numbers: who pays more?

- **D.C. (District of Columbia):** clear leader with US$ 17.50/h
- **Washington:** US$ 16.66/h (high cost of living, but minimum wage keeps pace)
- **California:** US$ 16.50/h + strict overtime rules (1.5x after 8 hours daily, 2x after 12 hours)
- **New York:** US$ 15.50/h to US$ 16.50/h (varies by zone)
- **Georgia and Wyoming:** US$ 5.15/h (theoretically, but in practice, the federal rate applies)

### Conclusion: is it worth it?

How much is a minimum wage in the USA when you do the math? It depends on where you work. In expensive cities like Los Angeles, Seattle, or New York, it’s not enough. In smaller regions where the cost of living is lower, it provides more breathing room — but it’s still tight.

For those coming from Brazil considering moving, the tip is: don’t just look at the salary in reais, also research the local cost of living. Direct conversion can be misleading.