How Much Do Workers Earn in the United States in 2025: Complete Analysis of the Minimum Wage

Many Brazilians have questions about how the American minimum wage works. Unlike Brazil, which adopts a single nationally defined floor, the American system operates in a decentralized manner — there is a federal minimum, but each state, county, and even city can set their own rates. This results in considerable variation: while some states maintain the federal minimum of US$ 7.25 per hour, others reach up to US$ 17.50 — a difference that directly impacts the minimum wage in the United States per month.

Why Does the Minimum Wage Vary So Much Between States?

The American structure is fundamentally different from the Brazilian one. While here there is a single federal definition, there the federal government set a minimum of US$ 7.25 per hour in 2009 — a value that has remained frozen for 16 years. However, states with higher living costs decided to adopt their own much higher floors. Major urban centers like New York, Los Angeles, San Francisco, and Seattle need minimum wages above this level just so workers can afford housing and basic expenses.

This decentralization creates a scenario where a fast-food worker in Washington DC (US$ 17.50/h) earns more than double someone with the same role in Mississippi (US$ 7.25/h).

What Is the Minimum Wage in the United States Per Month?

To calculate monthly income, a standard 40-hour workweek is used as the basis. Taking the federal floor:

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

This is the gross amount in states that follow only the federal minimum. However, in regions with higher floors, the reality is quite different:

• Washington DC: US$ 17.50/hour ≈ US$ 2,800/month
• California: US$ 16.50/hour ≈ US$ 2,640/month
• Massachusetts: US$ 15/hour ≈ US$ 2,400/month
• New York (NYC): US$ 16.50/hour ≈ US$ 2,640/month

The regional disparity is evident — the minimum wage in the United States per month can vary by up to 140% depending on the location.

Minimum Wage Details by State in 2025

The data below presents the main states and their respective minimum wages:

States with High Floors:

• District of Columbia: US$ 17.50/h
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York (state): US$ 15.50/h; (NYC): US$ 16.50/h
• Massachusetts: US$ 15/h
• Connecticut: US$ 15.69/h
• Illinois: US$ 14/h

States with Moderate Floors (US$ 11-13/h):

• Colorado, Maryland, Minnesota, Oregon, Rhode Island, Vermont

States with Floors Close to or Equal to Federal:

• Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas, Utah, Wyoming: US$ 7.25/h (federal floor)

Important note: even in states that officially set floors below US$ 7.25, the federal amount of US$ 7.25 generally prevails in practice for most employers.

Conversion to Brazilian Real: What Does It Mean in Practice?

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

• Federal Floor: US$ 7.25/hour ≈ R$ 37.70
• **Weekly (40h): US$ 290 ≈ R$ 1,508
• Monthly: US$ 1,160 ≈ R$ 6,032

In Washington DC:

• Monthly: US$ 2,800 ≈ R$ 14,560

At first glance, the direct conversion suggests that the American minimum in reais significantly exceeds the Brazilian minimum (R$ 1,518 in 2025). However, this simplistic comparison ignores crucial realities.

US vs. Brazil Minimum Wage: An Analysis Beyond Direct Conversion

Nominal value differences do not reflect the actual purchasing power. Experts use Purchasing Power Parity (PPP) for more accurate comparisons — a metric that shows how much each currency can buy in goods and services within its own country.

In this analysis:

• The US dollar, on average, buys fewer essential items than the equivalent real purchased in Brazil
• Rent in major American cities consumes 40-50% of the minimum income, while in Brazil this percentage varies by region
• Food, transportation, and healthcare tend to be proportionally more expensive in the US

Furthermore, the structural model is radically different: Brazil maintains a single floor nationwide, while the US operates a federated hybrid system resulting in extreme regional inequality.

Is It Possible to Live on the Minimum Wage in the United States?

The straightforward answer is no — in most cases, this amount is insufficient.

Analyzing average costs in the US:

• Basic cost of living (excluding housing): US$ 1,185/month
• National average rent: US$ 1,626/month
• Total: US$ 2,811/month

With a federal minimum of US$ 1,160, the budget simply does not add up. Even in states with higher floors like California or DC, although the salary is higher, the cost of living increases proportionally — especially rent.

Therefore, workers earning minimum wage often need:

• Multiple jobs
• Government benefits (food stamps, housing assistance)
• Family income supplements

Who Earns Minimum Wage in the US?

The minimum applies to:

• Workers aged 14 and above
• Employees in full-time or regular part-time roles
• Professionals who are not apprentices or interns
• Employees whose main income is not based on tips

Most affected professional categories:

• Restaurant and fast-food attendants
• Cashiers and retail salespeople
• Stock and replenishment staff
• Cleaning and maintenance crews
• Supermarket employees
• Entry-level operational positions

Note: Waiters, baristas, and other tip-based professionals may have a lower base salary, as gratuities supplement official income.

How to Calculate the Minimum Wage for Different Periods

The American system uses hourly as the base unit, making calculations straightforward:

Weekly formula: Hourly wage × 40 hours = weekly earnings

Example: US$ 7.25 × 40 = US$ 290

Monthly formula: Hourly wage × 40 × 4 = monthly earnings

Example: US$ 7.25 × 40 × 4 = US$ 1,160

States with higher floors easily exceed US$ 2,500 per month using this same methodology.

Final Considerations

The minimum wage in the United States per month reflects the complexity of a decentralized system that varies drastically depending on the locality. While the federal floor has been stagnant since 2009, progressive states regularly increase wages to keep up with inflation and local costs. For Brazilians considering a move, it is essential to research not only the salary in a specific state but also the local cost of living — because a nominally higher salary can be completely inadequate in an expensive metropolis.