How much is the monthly minimum wage really worth in the USA in 2025

Many Brazilians who dream of opportunities in the United States have the same question: how much does someone earning the minimum monthly salary in the US make? The answer is more complicated than it seems because the American system does not work like in Brazil.

How the American minimum wage works: federation vs. states

Unlike Brazil, which has a single national minimum wage of R$ 1,518, the US adopts a decentralized model. There is a federal minimum of US$ 7.25 per hour — frozen since 2009 —, but each state, county, and even city can set its own rate.

In practice, this means: a worker in Alabama can earn US$ 7.25/h, while another in Washington D.C. earns US$ 17.50/h for the same role. It’s a stark contrast that reflects the cost of living in each region.

What is the minimum wage per hour in the US

The US federal minimum remains at US$ 7.25 per hour. To understand the minimum monthly salary in the US, a simple conversion is needed:

40 hours/week × 4 weeks × US$ 7.25/h = US$ 1,160/month

But here’s the critical point: this amount is only the federal minimum. Many states have adopted higher minimum wages:

• California: US$ 16.50/h
• New York: US$ 15.50 to US$ 16.50/h (depending on the region)
• Washington: US$ 16.66/h
• District of Columbia: US$ 17.50/h (the highest in the country)
• Georgia and Wyoming: US$ 5.15/h (but the federal rate prevails in most cases)

Converting to reais: the minimum salary in the US in Brazilian currency

With an exchange rate of approximately R$ 5.20 per dollar in 2025:

• Federal minimum: US$ 1,160 ≈ R$ 6,032/month
• Washington D.C.: US$ 2,800 ≈ R$ 14,560/month

At first glance, it seems much higher than in Brazil. However, the real analysis must consider the local cost of living. Rent in New York or Los Angeles can consume 50% to 60% of this salary, leaving little for other expenses.

Who actually earns this amount

The minimum monthly salary in the US applies to:

• Workers aged 14 and above
• Employed under regular hours
• Who are not apprentices or interns
• Employees in restaurants, stores, supermarkets, and entry-level operational roles

An important exception: waiters and employees who depend on tips may earn less, as tips supplement their income.

The reality: can you live on the minimum monthly salary in the US?

The honest answer is no, in most cases. The numbers show:

• Basic cost of living (excluding rent): US$ 1,185/month
• Average rent in major cities: US$ 1,626/month
• Total: about US$ 2,811/month

Earning US$ 1,160 federally means an immediate deficit. Even in states with higher minimum wages, rents are proportionally higher. The budget rarely balances for a person living alone.

US vs. Brazil: beyond the numbers

Brazil has R$ 1,518 as the minimum. Converted to dollars (approximately US$ 292), it is well below the American federal minimum. However, simplistic comparisons can be misleading.

Purchasing power parity reveals the truth: one dollar in the US buys less than the equivalent in reais in Brazil. Additionally, Brazil adopts a single, centralized model, while the US creates huge regional disparities.

What you need to know before moving

If you are considering working in the US:

1. Research the specific state — not just the minimum monthly salary in the US federal system, but the local minimum
2. Calculate the cost of living — rent, transportation, food, health insurance
3. Consider other benefits — Americans may not receive 13th-month pay or guaranteed vacations like in Brazil
4. Evaluate your professional area — many jobs pay well above the minimum

The minimum monthly salary in the US in 2025 remains a decentralized and unequal topic. While the federal minimum has been frozen for years, progressive states approve continuous increases to keep up with inflation. For Brazilians, the lesson is simple: do not rely solely on currency conversion, understand the local context before making any decision.