What is the actual minimum wage in the United States in 2025? Complete state-by-state guide

Are you thinking about working in the USA? Then you need to know: the American minimum wage doesn’t work like in Brazil. Here, there isn’t a single national value — it’s much more complicated than that.

The American minimum wage system is decentralized

Unlike Brazil, where the federal government sets a single floor for the entire country, the United States operates with a hybrid model. There is a federal minimum of US$ 7.25 per hour (frozen since 2009), but each state, county, and even city can set their own rates. The result? A worker can earn from US$ 5.15 to US$ 17.50 per hour, depending on where they are. This regional disparity is huge.

How much does a minimum wage earner make monthly in the USA?

Since everything in the USA is calculated hourly, the monthly amount varies quite a bit. Using the standard 40-hour workweek as a reference:

Basic formula: hourly wage × 40 hours × 4 weeks = monthly salary

Applying the federal minimum:

• 7.25 × 40 × 4 = US$ 1,160 per month

But this number increases significantly in states with a high cost of living. Washington DC, for example, offers US$ 17.50 per hour, resulting in approximately US$ 2,800 per month.

Comparison: different scenarios for the American minimum wage

• Wyoming or Georgia: US$ 5.15/h → approximately US$ 824/month (in practice, the federal US$ 7.25 prevails)
• New York: US$ 15.50/h to US$ 16.50/h → between US$ 2,480 and US$ 2,640/month
• California: US$ 16.50/h → US$ 2,640/month
• Washington: US$ 16.66/h → US$ 2,666/month
• Washington DC: US$ 17.50/h → US$ 2,800/month

Who actually earns the American minimum wage?

The floor applies to workers with specific characteristics:

• Over 14 years old
• Employed under regular hours (not apprentices or interns)
• Without primary income based on tips

The most common professions include cashiers, stock clerks, cleaning staff, supermarket attendants, and entry-level operational roles. Waiters and professionals who live off tips may receive a lower base, supplemented by tips.

Converting the American minimum wage to reais: what is the reality?

Many Brazilians ask: how much is that in reais? With an approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

Federal minimum:

• Per hour: US$ 7.25 ≈ R$ 37.70
• Per month (4 weeks): US$ 1,160 ≈ R$ 6,032

Washington DC (the highest):

• Monthly: US$ 2,800 ≈ R$ 14,560

At first glance, it seems advantageous, but there’s a crucial detail: purchasing power isn’t the same.

American minimum wage vs. Brazil: a comparison beyond conversion

The US$ 1,160 monthly minimum wage in the USA appears higher than the Brazilian R$ 1,518 when converted to reais (about R$ 6,032). However, this analysis is superficial.

The cost of living quickly equalizes

In the USA, basic expenses consume almost all income:

• Average rent: US$ 1,626/month
• General expenses (excluding housing): US$ 1,185/month
• Total: US$ 2,811/month

With a salary of only US$ 1,160, it simply doesn’t add up. Even in states with a higher minimum, rents follow suit — California and DC have some of the most expensive housing in the country.

Purchasing power parity

Experts use this concept for fair comparisons: one dollar in the USA buys fewer goods and services than the equivalent in reais in Brazil. Therefore, the absolute difference in reais doesn’t translate linearly into a higher quality of life.

Structurally different models

Brazil: a single national value, set annually by the federal government. USA: a hybrid system with a federal floor coexisting with state and municipal floors, creating huge regional disparities.

Is it possible to live on the American minimum wage? The answer is complicated

In most cases, no — especially with the federal minimum of US$ 7.25. Working 40 hours a week, the numbers don’t add up to cover rent and essential expenses simultaneously.

States with higher minimums offer better pay, but paradoxically, these are precisely the regions with the highest rents. It’s a cycle: the higher the minimum wage, the higher the local inflation.

The states with the highest minimum wages in 2025

Top of the list:

• Washington DC: US$ 17.50/h
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York (region): US$ 15.50/h to US$ 16.50/h

Lowest end:

• Georgia and Wyoming: US$ 5.15/h (although the federal minimum of US$ 7.25 applies in practice)

How to calculate your American minimum wage

If you get a job in the USA, the calculation is simple:

Weekly: hourly wage × 40 = your weekly earnings Monthly: hourly wage × 40 × 4 = your monthly earnings

Practical example with the US$ 7.25 minimum wage:

• Weekly: 7.25 × 40 = US$ 290
• Monthly: 290 × 4 = US$ 1,160

In states with higher minimums, like California (US$ 16.50), the calculation results in US$ 2,640/month.

Crucial information: the American minimum wage has been frozen for 15 years

The federal minimum remains at US$ 7.25 since 2009. Meanwhile, states and cities have been approving significant increases to keep up with inflation and local costs. This gap between the federal and actual costs is a recurring political issue in the USA.

For Brazilians considering working or living in the USA, the main tip is to research not only the specific state’s minimum wage but also the actual cost of living in the city where they plan to settle. Numbers may seem high in reais, but the financial reality day-to-day can be quite tight.

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