What is the minimum wage in the USA in 2025: a complete guide by state and conversion to reais

The US labor market operates under a very different logic from Brazil when it comes to minimum wage. While Brazil establishes a single national minimum wage, the system in the US functions in a decentralized manner: there is a federal minimum of $7.25 per hour, but each state, county, and even larger cities have the autonomy to set their own rules. This results in an impressive variation — a worker can earn from $7.25 up to $17.50 per hour, depending on their geographic location.

For those planning to work, study, or move to the United States, understanding what the minimum wage is in the US is essential. This guide provides a detailed overview of the updated values, how the system works, and how it translates into real purchasing power.

The US minimum wage system: decentralization and disparities

The federal minimum wage has remained frozen at $7.25 per hour since 2009. However, this amount is only a floor — most states have already surpassed this number significantly. Areas with higher living costs, such as New York, Seattle, and Los Angeles, have established their own minimums, often doubling or even tripling the federal rate.

This fragmentation creates a complex scenario: what a worker earns in Wyoming is not even close to what they receive in Washington or the District of Columbia.

What is the minimum wage in the US per hour: the highest and lowest values

The extremes reveal the disparity of the system:

Highest minimum wages:

• District of Columbia: $17.50/hour — the highest in the country
• Washington: $16.66/hour
• California: $16.50/hour (with special rules for overtime)
• New York: $15.50/hour in the state, $16.50/hour in Manhattan and adjacent counties

Lowest minimum wages:

• Georgia and Wyoming: $5.15/hour — although the federal minimum of $7.25 applies in most cases

Converting to the Brazilian market: how much is it in reais?

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

Federal minimum wage (US$ 7.25/hour):

• Hourly: R$ 37.70
• Weekly (40 hours): R$ 1,508
• Monthly: R$ 6,032

Comparison in Washington D.C. (US$ 17.50/hour):

• Monthly: US$ 2,800 ≈ R$ 14,560

Although these numbers seem high in reais, the reality is much more nuanced when considering local purchasing power.

How much does a worker really earn per month?

The calculation is straightforward: multiply the hourly rate by 40 hours a week and by 4 weeks. For the federal minimum wage, this results in approximately US$ 1,160 per month — an amount that, according to experts, is insufficient to cover basic expenses in most US states.

Let’s take a practical scenario: a person earning the federal minimum wage faces:

• Basic cost of living: US$ 1,185/month
• Average rent: US$ 1,626/month

The math is simple: US$ 1,160 does not cover rent, much less food, transportation, and other essential expenses.

Who earns minimum wage in the US?

The minimum applies to workers starting at age 14, hired for regular shifts, and who are not apprentices or interns. Professions that typically earn this amount include:

• Restaurant and fast-food attendants
• Cashiers
• Stockers
• Cleaning aides
• Grocery store employees
• Entry-level operational positions

An important exception: waiters and other professionals who receive tips may have a lower base salary, as tips supplement their income.

Minimum wage: Brazil versus the US — what is the real difference?

In 2025, Brazil adjusted its minimum wage to R$ 1,518 — a single value for the entire nation. In the US, the federal minimum remains at US$ 1,160 monthly, with state variations that can exceed US$ 2,800.

A direct conversion suggests that the American worker earns significantly more. However, this superficial analysis ignores crucial factors:

Purchasing Power Parity (PPP): One dollar in the US buys fewer goods and services than the equivalent converted real in Brazil. This means that the difference in reais does not translate linearly into a higher quality of life.

Relative cost of living: While US$ 1,160 is considered insufficient for comfortable survival in the US, the same applies to R$ 1,518 in many Brazilian capitals. Both systems face deficits in purchasing power.

Structural model: Brazil standardizes a single minimum; the US allows regional variation. This offers opportunities for workers in developed areas but perpetuates inequality in less prosperous regions.

How to calculate your salary in different scenarios

Weekly: hourly wage × 40 hours Example: US$ 7.25 × 40 = US$ 290

Monthly: hourly wage × 40 × 4 Example: US$ 7.25 × 40 × 4 = US$ 1,160

Annual: hourly wage × 40 × 52 Example: US$ 7.25 × 40 × 52 = US$ 15,080

For states with higher minimums, such as California (US$ 16.50/hour), the monthly calculation would be approximately US$ 2,640.

Is it possible to live on minimum wage in the US?

The straightforward answer is challenging: in most cases, it is not comfortable. Even states with higher minimums face challenges, as they tend to have the most expensive rents in the country.

In Washington D.C., where the minimum wage is the highest (US$ 17.50/hour), a one-bedroom apartment costs on average US$ 2,200 — consuming most of a monthly minimum wage of US$ 2,800.

This means that workers earning the minimum often need multiple income sources, government subsidies, or shared housing to maintain an adequate standard of living.

The future of the minimum wage in the US

While the federal minimum has remained frozen for over a decade, states and cities continue approving increases to keep pace with inflation. Some economists argue that the federal rate is completely out of sync with modern economic realities, especially in large urban centers.

For Brazilians considering a move to the US, research should go beyond numbers: it is essential to investigate the specific cost of living in the region, career advancement opportunities, and, if possible, connect with professionals in the field to understand actual salaries — not just the legal minimum.