US Minimum Wage in 2024-2025: State-by-State Analysis and Comparison with Brazil

Understanding the minimum wage structure in the United States is essential for Brazilians planning to work, study, or move there. Unlike Brazil, which has a single national minimum wage, the American system is decentralized — meaning that the basic income varies significantly depending on where you work.

The U.S. Hybrid System: Federal vs. State

The federal minimum wage in the U.S. has been set at US$ 7.25 per hour since 2009. However, this amount only serves as a floor. Each of the 50 states has the legal autonomy to establish its own minimum wage, and when the state minimum is higher than the federal, the higher value applies to workers in that region.

This model has created a considerable disparity: while some states maintain the federal minimum of US$ 7.25/hour, regions with a high cost of living, such as Washington DC, California, and New York, already reach US$ 16.50 to US$ 17.50 per hour — more than 140% above the federal floor.

Individual cities also set their own minimums. New York City and Los Angeles, for example, have regulations that even surpass the state minimum in some professional categories.

Direct Comparison: USA vs. Brazil

A superficial analysis suggests a clear advantage for Americans. Taking an approximate exchange rate of US$ 1 = R$ 5.20 in 2024-2025:

• Federal minimum wage in the USA (US$ 7.25/h): ≈ R$ 37.70/hour or R$ 6,032/month (assuming 160 hours per month)
• Minimum wage in Brazil (2025): R$ 1,518/month

Numerically, the American value in reais appears to be four times higher. However, this direct comparison is misleading.

The Purchasing Power Factor

The relevant metric is not the raw conversion but the purchasing power parity (PPP). In the U.S., the absolute cost of living in many categories is significantly higher:

• Rent: national average of US$ 1,626/month (potentially exceeding US$ 2,500 in major cities)
• Food: US$ 350-450/month per person
• Transportation: US$ 150-250/month
• Health/Insurance: US$ 200-400/month
• Utilities: US$ 100-200/month

A worker earning the federal minimum of US$ 1,160/month cannot cover rent + food + transportation in any major American metropolis.

In Brazil, although R$ 1,518 is also insufficient in capitals, the relative cost of some categories is lower. For example, rent in the outskirts of São Paulo can vary from R$ 500-800, and public health services are free.

Regional Analysis: The Extremes of Minimum Wage

Regions with High Minimum Wage

Washington DC leads with US$ 17.50/hour (≈ R$ 91/hour), generating a monthly income of approximately US$ 2,800 (≈ R$ 14,560).

California established US$ 16.50/hour with special rules for overtime:

• Between 8-12 hours daily: pay at 1.5x normal hourly rate
• Over 12 hours daily or seventh consecutive day: 2x normal hourly rate

Washington adopts US$ 16.66/hour, reflecting a competitive labor market with tech giants like Amazon and Microsoft.

New York differentiates between regions:

• Rest of the state: US$ 15.50/hour
• Metropolitan areas (including NYC): up to US$ 16.50/hour

Regions with Low Minimum Wage

Georgia and Wyoming maintain nominal values of US$ 5.15/hour, even below the federal level. In practice, the federal minimum of US$ 7.25/hour prevails, as it is the supreme law on labor issues.

Even in “low” states like Mississippi and Alabama (which follow the federal), the reality is that large employers often offer higher wages to attract and retain talent.

How Much Does a Minimum Wage Worker Earn?

Standard Calculation: 40-Hour Workweek

The formula is simple:

Monthly salary = Minimum hourly wage × 40 hours × 4.33 weeks

Practical examples:

• Federal minimum: 7.25 × 40 × 4.33 = US$ 1,255/month
• Washington DC: 17.50 × 40 × 4.33 = US$ 3,031/month
• California: 16.50 × 40 × 4.33 = US$ 2,857/month

Variations by Sector

Workers in hospitality and food services often earn less than the official minimum wage because they receive tips as a supplement. Some states allow a “base salary” of US$ 2.13-3.00/hour, expecting tips to make up the difference to the legal minimum.

Professionals in retail, cleaning, operations, and logistics receive the full minimum wage without expectation of additional income.

Who Actually Receives the Minimum Wage?

Not all workers are subject to the minimum wage. The main exceptions include:

• Apprentices and interns: can earn up to 85% of the minimum during training periods (maximum 90 days)
• Employees with disabilities: some exceptions if approved by a federal agency
• Executives and specialized professionals: do not apply when there is a higher contractual salary
• Agricultural workers: different rules in certain circumstances
• Minors: can start working from age 14 with restrictions on hours

The occupations most commonly earning the minimum include retail cashiers, cleaners, warehouse helpers, fast-food staff, security guards, and telemarketers.

Updated Table: Minimum Wage by State (2024-2025)

*In practice, the federal minimum of US$ 7.25 prevails for most employers.

Is it Possible to Live on Minimum Wage in the USA?

The quick answer is no, it’s not feasible in most American cities.

A worker earning the federal minimum of US$ 1,255/month faces the following reality:

• Rent: US$ 1,200-1,600 (60-130% of income!)
• Food: US$ 300
• Transportation: US$ 150
• Health: US$ 150-300

Total: US$ 1,800-2,350 — exceeding available income.

Even in regions with high minimum wages (like Washington DC with US$ 3,031), the cost of living matches or exceeds earnings. A one-bedroom rent in DC can easily reach US$ 1,800-2,200.

Many American workers:

• Share housing with multiple roommates
• Work more than 40 hours a week (or hold two jobs)
• Receive government subsidies (food stamps, housing vouchers)
• Carry personal or student debt

Economic Context: Stagnation of the Federal Minimum

A critical aspect: the federal minimum has been frozen for 15 years (since 2009). The accumulated inflation over this period is about 50%, meaning the real purchasing power of the minimum hourly wage has halved.

Politically, raising the federal minimum is a controversial topic. Advocates argue that adjusting it to US$ 15/hour would be fairer; opponents fear inflationary impacts and unemployment.

Meanwhile, progressive states move forward independently. California has already signaled plans to reach US$ 20/hour in the coming years.

Conclusion: Research Before Deciding

For a Brazilian considering working in the USA, it is essential to:

1. Research the specific minimum wage of the state — don’t assume it’s the federal rate
2. Map the cost of living in the city, not just rent
3. Consider additional benefits — health, vacation, unemployment aid vary by state and sector
4. Evaluate opportunities for advancement — minimum wage is typically an entry-level position
5. Compare with alternatives — studying in the USA may offer better cost-benefit ratio

The minimum wage in the USA reflects a decentralized, complex, and evolving system — quite different from the simplicity of a single Brazilian floor.