How much do people working in the United States earn? 2025 Guide on Foreign Minimum Wage

Many Brazilians dream of working in the USA, but they don’t know exactly what their compensation will be. The reality is that the American system operates completely differently from ours. While in Brazil we have a single minimum wage set nationally, the United States adopts a decentralized and complex model — which means your income will depend much more on the location than you might imagine.

How does the minimum wage work in the USA?

The federal minimum wage in the US is US$ 7.25 per hour, frozen since 2009. However, this is just the beginning of the story. Each state has the autonomy to set its own minimum, and many already exceed this federal mark significantly. Some counties and cities can set even higher minimums, especially those with a high cost of living.

This decentralized structure creates a huge disparity: a worker can earn from US$ 5.15 up to US$ 17.50 per hour, depending on where they work. Cities like New York, Los Angeles, and Seattle have implemented minimum wages well above the federal level, reflecting the high local cost of housing and services.

How much do you really earn? Practical calculations

Wages in the US are calculated per hour, not per month. Considering a standard 40-hour workweek:

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

This amount, converted to reais at an approximate exchange rate of R$ 5.20 per dollar, results in about R$ 6,032 per month — which at first glance seems quite attractive compared to the R$ 1,518 minimum wage in Brazil in 2025.

But here’s the important detail: this simple conversion does not reflect the actual purchasing power. Although the amount in reais is higher, costs in the US are proportionally higher. An average rent consumes between US$ 1,600 and US$ 1,800 per month, just counting this expense.

Minimum wages in the main regions (2025)

The most sought-after states and cities by Brazilians:

• District of Columbia (Washington D.C.): US$ 17.50/h (highest in the country) → approximately US$ 2,800/month
• Washington: US$ 16.66/h (one of the highest)
• California: US$ 16.50/h, with special rules for overtime (1.5x after 8 hours daily, 2x after 12 hours)
• New York: US$ 15.50/h (state), reaching US$ 16.50/h in some city areas
• Georgia and Wyoming: US$ 5.15/h (among the lowest, although the federal US$ 7.25 generally prevails)

Large and developed states have kept pace with inflation through periodic increases, while the federal minimum has remained stagnant.

Who earns the minimum wage?

This compensation applies to:

• Workers aged 14 and above
• Entry-level and operational roles
• Those without specific experience or qualifications

Common professions include restaurant attendants, cashiers, cleaning staff, and retail workers. An important exception: waiters and other professionals who receive tips may have a lower base salary, as tips supplement their income (system different from Brazil).

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

The answer is complicated. Based on average costs:

• Basic expenses (food, transportation, healthcare): US$ 1,185/month
• Average rent: US$ 1,600/month
• Total needed: approximately US$ 2,800/month

A federal minimum wage of US$ 1,160 is well below what is necessary. Only in regions with higher minimums — such as D.C., California, or New York — does the amount come close to being feasible, but then the cost of living also rises.

Comparison with Brazil: beyond the numbers

Numerically, the American minimum wage in reais (US$ 1,160 = R$ 6,032) is four times higher than the Brazilian (R$ 1,518). But experts use the “Purchasing Power Parity” for more accurate analyses — meaning that one dollar in the US buys proportionally less than R$ 5.20 in Brazil.

Structurally, there is another difference: Brazil has a single national minimum wage, while the US operates with a hybrid system (federal + state + municipal). This results in enormous regional variation in opportunities.

Planning before moving

If you are considering working in the United States, research not only the state’s minimum wage but also:

• The rental costs in the specific region
• State and municipal taxes
• Benefits offered (health, 401k)
• Possibility of salary progression

The minimum wage is just the starting point — your actual situation will depend much more on the sector, experience, and chosen location.