Understand the Minimum Wage System in the USA: How It Works in 2025 and a Comparison with Brazil

The minimum wage system in the United States intrigues many Brazilians considering working there. Unlike Brazil, which adopts a single amount nationwide, the American model is decentralized and varies significantly depending on the region.

The Structure of the American Minimum Wage

In the US, the federal baseline sets US$ 7.25 per hour as the national minimum — a rate frozen since 2009. However, here’s the important detail: states, counties, and municipalities have the autonomy to set their own minimum wages, provided they are higher than the federal floor.

This autonomy has created a landscape of great disparity. While some states maintain the federal minimum of US$ 7.25/h, other regions like Washington D.C. reach US$ 17.50/h — more than double.

How Much Does a Worker Earn: From Hourly to Monthly

The American calculation is based solely on hours worked. Considering a standard 40-hour workweek, the formula is straightforward:

• Week: 7.25 × 40 = US$ 290
• **Month (4 weeks): 7.25 × 40 × 4 = US$ 1,160

In regions with a higher minimum wage, the numbers change quickly. Washington D.C., for example, generates a monthly income of US$ 2,800 for the same workload.

State-by-State Overview: The Extremes

The mapping of minimum wages in the US reveals notable contrasts:

Highest Values:

• Washington D.C.: US$ 17.50/h
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York (metropolitan area): up to US$ 16.50/h

Lowest Values:

• Georgia and Wyoming: US$ 5.15/h (in practice, the federal US$ 7.25 prevails)

Deeply linked to the cost of living, this pattern shows that metropolises with high expenses tend to set higher floors to ensure a minimum level of viability.

Who Receives These Wages?

The minimum wage applies universally to:

• Professionals aged 14 and above
• Employees under a regular working schedule
• People not working as apprentices or interns
• Those whose income does not primarily depend on tips

The most exposed professions to the minimum wage include cashiers, cleaning assistants, stock clerks, fast-food employees, and entry-level administrative staff.

Relevant note: Waiters and attendants who live off tips may receive a lower base salary, as tips supplement their income.

California in Focus: Overtime Amplified

California deserves special mention for its strict overtime structure:

• Over 8h/day: pay 1.5x the hourly rate
• Over 12h/day: pay 2x the hourly rate

This regime benefits workers who exceed the standard workday.

Conversion to Reais: Brazilian Perspective

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

• Federal hourly: US$ 7.25 ≈ R$ 37.70
• **Week (40h): US$ 290 ≈ R$ 1,508
• Month: US$ 1,160 ≈ R$ 6,032
• **Washington D.C. (monthly): US$ 2,800 ≈ R$ 14,560

At first glance, the amount in reais seems quite higher. But this superficial comparison masks a more complex reality.

Brazil vs. USA: Beyond Simple Conversion

The minimum wage in Brazil (R$ 1,518 in 2025) apparently falls far behind when converting the American floor. However, this linear analysis is misleading.

Purchasing Power: One dollar in the US buys fewer goods and services than the equivalent amount in reais in Brazil. In terms of purchasing power parity, the actual difference is much smaller than the numbers suggest.

Structure of Definition: Brazil adopts a uniform value set by the federal government. The US operates with a hybrid system: federal minimum + state minimums + municipal minimums, creating regional disparities that are hard to quantify.

Disproportionate Cost of Living: In both countries, the minimum wage is insufficient to comfortably cover the cost of living in large urban centers, especially capitals.

Is It Feasible to Live on the Minimum Wage?

The practical answer is: hardly, in real scenarios.

With a federal minimum wage of US$ 1,160/month, the expenses don’t add up easily:

• Basic expenses (food, transportation, utilities): US$ 1,185/month
• National average rent: US$ 1,626/month

Total commitments: approximately US$ 2,811/month — more than 140% above the federal minimum wage.

States with higher floors offer higher income, but simultaneously impose equally higher rents, perpetuating the difficulty.

Conclusion: Structured Research Is Essential

The US minimum wage is not a single, unchangeable number — it’s a web of overlapping state and municipal legislations. For Brazilians considering working in the United States, it is absolutely necessary to investigate not only the specific regional minimum wage but also the local cost of living, benefit availability, and salary progression opportunities.

Understanding this complexity turns international relocation decisions from gambles into informed plans.