Understand the minimum wage in the USA in 2025: values, calculations, and regional disparities

What You Need to Know About the Minimum Wage in the USA

Many Brazilians planning to work in the United States have questions about how the minimum wage works there. Unlike Brazil, where there is a single national floor, the American system operates in a decentralized manner. The country has set a federal minimum of US$ 7.25 per hour since 2009, but states, counties, and even municipalities have the freedom to set higher values. This fragmentation creates a landscape where workers can earn between US$ 5.15 and US$ 17.50 per hour, depending on where they work.

Disparity Between Regions: How the Minimum Wage in the USA Varies

Regional variation is dramatic. Washington DC leads with US$ 17.50 per hour — almost 2.4 times above the federal floor. California and Washington offer approximately US$ 16.50 and US$ 16.66, respectively, reflecting extremely high living costs in cities like Los Angeles and Seattle. On the other hand, Georgia and Wyoming have the lowest legal minimum at US$ 5.15, although the federal floor of US$ 7.25 generally prevails in practice.

New York also ranks among the highest: US$ 15.50 in the state, reaching US$ 16.50 in Manhattan and adjacent counties.

How Much Does a Worker Earning Minimum Wage Make Monthly in the USA?

The calculation is based on hours worked. A standard 40-hour workweek at the federal minimum results in:

US$ 7.25 × 40 hours × 4 weeks = US$ 1,160 per month

However, this figure varies considerably depending on the location. In Washington DC, a worker earns approximately US$ 2,800 per month (US$ 17.50 × 40 × 4).

Conversion to Reais: Purchasing Power in Perspective

With the dollar exchange rate close to R$ 5.20 in 2025, the equivalent of the minimum wage in the USA at the federal level would be:

• Hourly: US$ 7.25 ≈ R$ 37.70
• Weekly (40h): US$ 290 ≈ R$ 1,508
• Monthly: US$ 1,160 ≈ R$ 6,032

In Washington DC, the monthly income would reach approximately R$ 14,560. Although numerically higher than the Brazilian minimum wage of R$ 1,518, the purchasing power analysis reveals important nuances. In the USA, the minimum wage often does not cover basic expenses such as rent and overall cost of living combined.

Which Worker Categories Receive This Amount?

The minimum wage in the USA applies to:

• Employees aged 14 and older
• Regular full-time hires
• Professionals who are not apprentices or interns
• Those whose compensation does not primarily depend on tips

Common occupations include: restaurant attendants, cashiers, cleaning assistants, stock clerks, and entry-level operational roles. An important note: waiters and professionals who live off tips may receive a reduced base salary, supplemented by customer gratuities.

Is It Feasible to Live on the Minimum Wage in the USA?

The answer is complex. With the federal floor, a person faces serious difficulties. Average costs indicate:

• Living expenses (excluding rent): US$ 1,185/month
• Average rent: US$ 1,626/month

This totals approximately US$ 2,811 per month — well above the federal minimum. Even in states with higher floors, rents follow this trend: California and DC have some of the most expensive housing in the country.

How to Calculate the Minimum Wage in the USA for Different Periods

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

States with higher floors easily surpass US$ 2,500 per month.

Comparative Perspective: Brazil versus the United States

Both countries face similar challenges with their legal minimums. Brazil adopts a centralized model with R$ 1,518 nationwide, while the USA uses a hybrid approach — federal plus state. Neither value provides financial comfort in large urban centers. The key difference lies in flexibility: Americans in wealthy states can earn significantly more than those in less developed regions.

The American system has remained frozen at the federal level for 16 years, leaving updates to states and municipalities — creating a mosaic of opportunities and challenges for those seeking work opportunities.