How much is it really worth to earn minimum wage in the United States in 2025?

If you are Brazilian thinking about working in the USA, here’s the real deal: the American minimum wage is not what it seems at first glance. While the federal floor remains at just US$ 7.25 per hour (frozen since 2009), each state plays its own game — some pay US$ 17.50, others still use the federal as a reference. Let’s unravel this decentralized system and understand if it’s really possible to live on these wages.

The American minimum wage system: why does it vary so much?

Unlike Brazil, which has a single national minimum wage set by the federal government, the USA operates in a decentralized manner. The federal minimum is US$ 7.25/h, but states, counties, and even cities can — and often do — establish their own rules. The result? A worker can earn anywhere from US$ 7.25 to US$ 17.50 per hour depending on where they work.

Cities with high living costs like New York, Los Angeles, and Seattle simply couldn’t sustain workers on the federal minimum wage. That’s why they created their own floors, which end up being 2 to 3 times higher than the national minimum.

How much does it take home each month?

The calculation is basic: hourly wage × hours per week. Considering a standard 40-hour workweek and 4 weeks per month:

Federal minimum wage:

• US$ 7.25/h × 40h × 4 = US$ 1,160/month (approximately R$ 6,032 with exchange rate of US$ 1 = R$ 5.20)

In expensive cities like Washington D.C.:

• US$ 17.50/h × 40h × 4 = US$ 2,800/month (about R$ 14,560)

The difference is brutal. Someone in D.C. earns more than double someone in a state that maintains the federal minimum.

The comparison no one makes: Brazil vs. United States

It seems that earning US$ 1,160 per month in the US (about R$ 6,000) is a fortune compared to the Brazilian minimum wage of R$ 1,518. But the reality is more complex.

Purchasing power tells the truth: One dollar in the US buys fewer things than the equivalent in reais in Brazil. Rent, food, transportation, healthcare — everything costs proportionally more in the US. That’s why economists use the Purchasing Power Parity (PPP) to compare: an American dollar does not linearly equal 5 reais in terms of quality of life.

Different structure: Brazil centralizes everything into a single national number. The US leaves each region to decide. This means that a real gain in the US is very regional — if you’re in a conservative state with the federal minimum, things get tighter.

Who earns this money?

The federal minimum wage in the United States basically applies to:

• Workers aged 14 and up
• People hired for regular hours
• Those not in training or internship programs
• Professionals who do not rely on tips as their main income

In practice, the highest earners like this are: fast-food attendants, cashiers, stock clerks, cleaning staff, supermarket helpers. Entry-level operational roles, generally.

Important detail: Waiters and attendants who receive tips can earn a lower base (in some states up to US$ 2.13/h), because tips are considered part of the compensation. Theoretically, if tips don’t reach the minimum, the employer makes up the difference. Theoretically.

The real numbers by state in 2025

The highest floors:

• Washington D.C.: US$ 17.50/h (the highest in the country)
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York (in the city): US$ 16.50/h
• Massachusetts and Maryland: US$ 15/h

The lowest:

• Georgia and Wyoming: US$ 5.15/h (but federal prevails)
• Most southern states: Between US$ 7.25 and US$ 11/h

Can you live on it? The uncomfortable answer

Straightforward: in most cases, not comfortably.

Basic monthly costs in the US:

• Cost of living (food, utilities, transportation, excluding rent): US$ 1,185/month
• Average rent: US$ 1,626/month
• Minimum total: US$ 2,811/month

That federal salary of US$ 1,160? Covers only food and utilities. Rent comes from another income source. That’s why many Americans work two jobs, even earning above the minimum.

States with higher minimums like California and D.C. pay better, but rents there are also the worst in the country. The bottom line still doesn’t add up for those earning only the minimum.