What is the real value of working with the minimum wage in the United States in 2025?

If you are thinking about moving to the United States to work, you need to understand how the compensation system works there. Unlike Brazil, which has a single national minimum wage, the minimum wage in the United States varies quite a bit — there is a federal floor, but each state, county, and even city can set its own rules. This creates a very different reality depending on where you work.

The federal floor has been frozen since 2009

The federal minimum wage in the US has remained at US$ 7.25 per hour since 2009 — yes, 16 years without an increase at the national level. However, this is just the base: many states have already surpassed this amount significantly. Currently, the minimum wage in the United States ranges from US$ 5.15 (in states like Georgia and Wyoming, where federal rules prevail) to US$ 17.50 in Washington D.C., the highest in the country.

The hourly and monthly reality

To understand how much you would earn, it’s important to know that in the US, pay is calculated hourly. If we consider the standard 40-hour workweek:

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

• Weekly: US$ 290
• Monthly (4 weeks): US$ 1,160

Compared to higher-wage regions:

• Washington: US$ 16.66/h = approximately US$ 2,666/month
• California: US$ 16.50/h = approximately US$ 2,640/month
• New York: US$ 15.50/h to US$ 16.50/h depending on the region
• Washington D.C.: US$ 17.50/h = approximately US$ 2,800/month

Who earns this amount?

The minimum wage in the United States mainly applies to:

• Cashiers in retail establishments
• Restaurant and fast-food attendants
• Stockers and general helpers
• Cleaning staff
• Entry-level operational roles in companies

An important exception: waiters and professionals who receive tips as a significant part of their income may earn less at the base, as tips supplement the salary.

Converting to the Brazilian reality

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

US federal minimum wage:

• Per hour: US$ 7.25 ≈ R$ 37.70
• Per month: US$ 1,160 ≈ R$ 6,032

Washington D.C. )highest minimum wage in the US(:

• Per month: US$ 2,800 ≈ R$ 14,560

At first glance, these seem like attractive amounts in reais. But when you compare with the Brazilian minimum wage of R$ 1,518, the analysis changes completely when considering the actual purchasing power in each country.

The real problem: cost of living vs. income

A salary of US$ 1,160 per month with the federal floor is not enough to cover basic expenses in most American states. Let’s look at average costs:

• Basic living costs )food, utilities, transportation(: US$ 1,185/month
• Average rent )depending on the state(: US$ 1,626/month

This means that just with housing and basic expenses, you would already be running a deficit.

States with better pay, but with pitfalls

The locations with the highest minimum wages in the US — California, New York, Washington D.C. — also have the highest rents in the country. Washington D.C., for example, offers US$ 17.50/h, but renting a bedroom in a residential area costs between US$ 1,800 and US$ 2,200.

California also implements an interesting overtime structure:

• Up to 8 hours daily: regular pay
• From 8 to 12 hours: 1.5x the normal rate
• Over 12 hours: 2x the normal rate

This allows earning more with extended shifts but requires working beyond 40 hours a week.

Comparison with Brazil: real purchasing power

While Brazil adopts a single, centralized national minimum wage, the minimum wage in the US operates on a hybrid system — federal floor + state freedom. This creates significant regional disparities.

A crucial aspect is the parity of purchasing power: one dollar in the US buys, on average, fewer goods and services than the equivalent amount in reais in Brazil. The numerical difference in reais does not directly translate into proportional quality of life.

Can you live solely on the US minimum wage?

In most scenarios, the answer is no — especially with the federal floor. Even in states with higher minimum wages, the budget is tight. Professionals earning minimum wage generally need to:

• Have roommates )share rent(
• Work more than 40 hours a week
• Have additional employer benefits )health, food(
• Live in more distant areas from urban centers

Conclusion: research before moving

The minimum wage in the US is a complex and decentralized topic. There is no single answer — everything depends on the state, city, and your professional profile. For Brazilians interested in working there, the essential thing is to research not only the regional wage floor but especially the local cost of living before making any decision.

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