How much does a worker earn in the USA? Understand the American minimum wage in 2025

If you are considering working or moving to the United States, one of the first questions that arises is: what is the minimum wage in the United States? The answer is not as simple as it seems, because unlike Brazil, the American system operates in a decentralized manner — and this varies quite a bit depending on the location.

Federal minimum wage vs. state-specific reality

In the US, there is a legally established minimum value: US$ 7.25 per hour. This number has remained unchanged since 2009. However, what many people do not know is that each state has the autonomy to set its own minimum wage. The consequence? A worker can earn anywhere from US$ 7.25 to US$ 17.50 per hour, depending on where they work.

This decentralization creates a very different scenario from Brazil, where a single national value is set by the federal government. In the US, large cities and states with high living costs — such as California, New York, Seattle, and Washington D.C. — have already surpassed US$ 16 per hour.

How much is the minimum wage converted to reais?

For those thinking in Brazilian terms, converting the amount can provide better clarity. Considering the approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

• Federal minimum wage per hour: US$ 7.25 ≈ R$ 37.70
• Weekly income (40 hours): US$ 290 ≈ R$ 1,508
• Monthly income (4 weeks): US$ 1,160 ≈ R$ 6,032

In regions with higher minimum wages, such as Washington D.C., where the rate reaches US$ 17.50 per hour:

• Monthly income: US$ 2,800 ≈ R$ 14,560

Brazil versus United States: which system is better?

This is a question many Brazilians ask themselves. In absolute numbers, the American minimum wage (in reais) appears to be four times higher than the Brazilian minimum of R$ 1,518. But the story doesn’t end there.

The cost of living changes everything. While in Brazil you can cover basic expenses with the minimum wage in many regions, in the US the reality is more challenging. An average rent costs about US$ 1,626 per month, and essential expenses (excluding rent) reach US$ 1,185. This means that with the federal minimum of US$ 1,160, the bills simply don’t add up.

Additionally, there is an important concept called Purchasing Power Parity (PPP). It shows that, despite currency conversion, one dollar in the US buys fewer goods and services than the same amount in reais in Brazil. Therefore, that fourfold difference in reais does not translate linearly into quality of life.

How does the minimum wage work in different states?

The minimum wage varies quite a bit depending on the region:

States with higher wages:

• District of Columbia (Washington D.C.): US$ 17.50/h — the highest in the country
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York: US$ 15.50 to US$ 16.50/h (varies by region)
• Massachusetts: US$ 15/h

States with lower values:

• Georgia and Wyoming: US$ 5.15/h (but the federal minimum of US$ 7.25 applies in most cases)
• Texas, Florida, and South Carolina: US$ 7.25/h (follow the federal minimum)

It’s worth mentioning that in high-cost-of-living cities, local governments can establish even higher minimum wages than the state level.

Who earns the minimum wage in the US?

The minimum wage applies to any worker employed regularly from age 14, except apprentices and interns. The most common professions earning this amount include:

• Fast-food and restaurant attendants
• Cashiers in supermarkets
• Stockers
• Cleaning and maintenance assistants
• Entry-level operational workers

An important note: professionals who receive tips — such as waiters — can earn a lower base salary, as tips are considered part of their compensation.

Can you live on the minimum wage in the US?

The predominant answer is: no, in most cases. Even working a standard 40-hour week, the federal minimum is not enough to cover basic expenses in most parts of the country.

States with more generous minimum wages, like California or D.C., offer higher monthly income — but these same states also have some of the most expensive rents in the nation. Thus, although the salary is higher in nominal terms, purchasing power remains limited.

For a Brazilian considering working in the US, the recommendation is to research not only the minimum wage in the specific region but also the local cost of living before making any decision. The difference between states can be as significant as the difference between countries.

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