What is the actual value of the minimum wage in the United States in 2025?

The minimum wage in the United States is a topic that causes confusion among Brazilians interested in working there. Unlike Brazil, which has a single national value set by the federal government, the US adopts a completely decentralized system. At the top of this hierarchy is the federal floor of US$ 7.25 per hour — frozen since 2009 — but this is only half the story. States, counties, and cities can (and) set their own floors, creating a mosaic of values ranging from US$ 7.25 to US$ 17.50 depending on where you work.

Why does the US minimum wage vary so much?

While Brazil centralizes this decision in Brasília, the American system functions like a patchwork. The federal government establishes a minimum floor that can never be undercut, but states with high living costs — such as California, Washington, and the District of Columbia — approve much higher values to keep up with inflation and local expenses. This means that a worker in Wyoming earns practically the federal floor of US$ 5.15, which effectively activates the federal minimum of US$ 7.25(, while someone in Washington D.C. earns US$ 17.50 per hour — more than double.

The federal floor remains stagnant

Since 2009, the US federal minimum wage has not been adjusted. US$ 7.25 per hour remains the national standard, which represents a significant loss of purchasing power over 16 years. To put it into context: in 2009, this amount carried much more weight. Today, in most American states, this floor is considered insufficient to cover basic expenses. For this reason, progressive states have been implementing gradual increases.

Calculating the monthly salary

Since the US system works hourly, the monthly amount varies according to the workload. Using the standard formula of 40 hours per week for 4 weeks:

Federal Minimum Wage:

• Hourly: US$ 7,25
• Weekly )40h(: US$ 290
• Monthly: US$ 1,160

In states with higher floors, the calculation changes drastically:

Washington D.C. )highest floor in the country(:

• Hourly: US$ 17,50
• Monthly: US$ 2,800

California:

• Hourly: US$ 16,50
• Monthly: US$ 2,640

Who earns minimum wage in the US?

The floor applies to:

• Workers aged 14 and over
• Employees in regular employment )excluding apprentices or interns(
• Professionals who do not rely on tips as their main income

The most affected sectors include:

• Fast-food and restaurant attendants
• Cashiers
• Stockers and cleaning assistants
• Supermarket employees
• Entry-level operational roles

Important note: waiters and professionals who receive tips may have a reduced base salary, as tips supplement their pay until reaching the federal minimum.

Highlights of minimum wage by state

District of Columbia: US$ 17.50/h — the highest in the country, reflecting the cost of living in a capital Washington: US$ 16.66/h — among the highest, with high living costs reflected in the floor California: US$ 16.50/h — with a differentiated overtime system )+50% after 8h/day; +100% after 12h/day( New York: US$ 15.50/h on average, reaching US$ 16.50/h in NYC and neighboring counties Georgia and Wyoming: US$ 5.15/h — one of the lowest, but the federal floor of US$ 7.25 practically prevails

Converting to reais: what is the reality?

Using the approximate exchange rate of 2025 )US$ 1 ≈ R$ 5,20(:

Brazilian Federal Floor in equivalent:

• Per hour: US$ 7,25 ≈ R$ 37,70
• Weekly: US$ 290 ≈ R$ 1.508
• Monthly: US$ 1.160 ≈ R$ 6.032

Washington D.C.:

• Monthly: US$ 2,800 ≈ R$ 14.560

At first glance, the American minimum wage in reais )R$ 6.032( seems significantly higher than the Brazilian )R$ 1.518(. However, this direct comparison is misleading.

The real purchasing power: which country pays better?

Although it seems that the US pays 4 times more, the reality is more complex. Experts use the concept of Purchasing Power Parity )PPP( for fair analyses. One US dollar, on average, buys fewer goods and services than the equivalent converted into reais in Brazil. Additionally:

• Cost of living in the US: US$ 1,185/month )excluding rent( + US$ 1,626/month )average rent(
• Total: Approximately US$ 2,811/month in basic expenses

With a federal minimum wage of US$ 1,160, the numbers don’t add up. You would need a supplementary job or to be in a state with a higher floor.

Is it possible to live on minimum wage in the US?

In most cases: no. Even working 40 hours a week, the federal floor leaves a significant deficit. States with higher wages )California, Washington, D.C.( offer more income, but also have the most expensive rents in the country, canceling out the relative advantage.

In Brazil, the minimum wage of R$ 1,518 is also considered insufficient in large capitals, but in smaller cities, it offers a slightly better quality of life proportionally. The real difference lies in the system: while the US leaves the decision to states and cities, Brazil centralizes — and both models face criticism for insufficiency.

Conclusion: research before deciding

The minimum wage in the US is a decentralized and complex topic. If you are considering working in the United States, don’t just look at the state floor — also research the specific cost of living in the city and region. A salary of US$ 17,50/h in Washington D.C. sounds great until you find out that a room rent costs US$ 1,800/month. The decision should consider income, local expenses, and professional growth opportunities, not just the absolute number on the paycheck.

Bonus: Register and get a US$ 100 bonus! Practice with US$ 50,000 in virtual funds and trade risk-free. [Start trading now]