Minimum Wage in the United States in 2025: Practical Guide and Regional Value Comparison

Are you thinking about working in the USA or just want to understand how American compensation works? This article details everything you need to know about the minimum wage in the United States, including how it is calculated, how it varies from state to state, and how it compares to Brazil.

Why is the Minimum Wage in the United States so different from Brazil?

The main difference lies in the model of setting wages. While Brazil establishes a single national minimum wage, the US operates in a decentralized manner. The federal government sets a minimum of US$ 7.25 per hour — frozen since 2009 — but each state, county, and even city can determine its own rates. As a result: workers earn from US$ 5.15 to US$ 17.50 per hour, creating a huge variation depending on the location.

How much does a worker with minimum wage in the United States earn?

Unlike Brazil, in the US the calculation is per hour. For a standard 40-hour workweek, considering the federal minimum:

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

But this number changes drastically depending on the region. In Washington D.C., for example, the worker would earn:

17.50 × 40 hours × 4 weeks = US$ 2,800 per month

This represents a difference of US$ 1,640 per month solely due to location — a very different reality from the centralized Brazilian model.

What is the minimum wage in each region of the United States?

The states with the highest minimum wages are:

District of Columbia: US$ 17.50/h (the highest in the country)

Washington: US$ 16.66/h (reflects high cost of living)

California: US$ 16.50/h (with overtime system: +8h/day earns 1.5x; +12h/day earns 2x)

New York: US$ 15.50/h in the state; US$ 16.50/h in the city and surroundings (keeping up with urban inflation)

Massachusetts, Oregon, and Colorado: range between US$ 15 and US$ 15.50/h

The states with the lowest values (Georgia and Wyoming) officially have US$ 5.15/h, but in practice, the federal rate of US$ 7.25 prevails for most categories.

Who earns the minimum wage in the United States?

The minimum wage applies to:

• Workers aged 14 and older
• Hired for regular employment (not apprentices or interns)
• Professionals who do not rely on tips as their main income

The most common professions earning this amount are: restaurant attendants, cashiers, stock clerks, cleaning aides, and supermarket employees.

Important exception: waiters and other professionals who receive tips may earn less in base salary, as tips supplement their income.

How to calculate the minimum wage in the United States?

The formula is simple:

Weekly: hourly wage × 40 hours

Example with the federal minimum: 7.25 × 40 = US$ 290/week

Monthly: hourly wage × 160 hours (40h × 4 weeks)

Example: 7.25 × 160 = US$ 1,160/month

For states like California or D.C., the calculation follows the same pattern, but the final amounts are proportionally higher.

Converting to the Brazilian reality

With the dollar exchange rate around R$ 5.20 in 2025:

US federal minimum wage:

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

In Washington D.C.:

• Monthly: US$ 2,800 ≈ R$ 14,560

Although the amounts in reais seem high, the important analysis is purchasing power. A salary of US$ 1,160 in the US does not cover basic expenses in many states, while in Brazil, R$ 1,518 faces similar challenges in large urban centers.

Can you live on this salary?

In most cases, no. With a federal minimum wage, after deductions:

• Cost of living (food, transportation, utilities): US$ 1,185/month
• Average rent: US$ 1,626/month

The numbers simply don’t add up with US$ 1,160. Even in states with higher minimum wages, like California or D.C., rents are disproportionately high — often doubling or tripling those of cheaper states.

The minimum wage in the United States continues to evolve

While the federal minimum remains unchanged since 2009, states and cities regularly approve increases following inflation and local costs. For Brazilians considering working in the US, researching not only the minimum wage but also the actual cost of living in the region is essential before making any decision.