How Much Is It Really Worth to Work with the Minimum Wage in the USA in 2025?

Many people dream of moving to the United States thinking they will get rich, but the reality of the minimum wage there is quite different. The US federal minimum wage is set at US$ 7.25 per hour — a rate that hasn’t changed since 2009. Yes, you read that right: frozen for 16 years. Meanwhile, states and cities have the freedom to set their own rates, creating an absurd disparity: you can earn from US$ 5.15 (Georgia and Wyoming) up to US$ 17.50/h (Washington D.C.).

The Math Doesn’t Add Up

Let’s look at the numbers: working 40 hours a week at the federal minimum wage, a worker earns approximately US$ 1,160 per month. Converting to reais (2025 exchange rate: ~R$ 5.20), that amounts to about R$ 6,032 per month.

Sounds like a lot? Well, that’s where the illusion falls apart.

Average housing costs in the US are around:

• Rent: US$ 1,626/month (and this is an average)
• Basic living expenses: US$ 1,185/month

Result: with US$ 1,160, the budget doesn’t even come close. You end up in deficit in the first month.

Do States with Higher Minimums Make Up for It?

Not necessarily. Yes, Washington D.C. offers US$ 17.50/h (US$ 2,800/month), California and New York are also above US$ 16/h. But guess what? These are the regions with the most expensive rents in the country.

In Washington D.C., the average rent exceeds US$ 2,400. In New York and San Francisco, it surpasses that. So you earn more, but also spend proportionally more. The real difference in purchasing power isn’t as big as it seems.

How It Works in Practice

The American system is decentralized and quite different from Brazil. Here, we have a single national minimum wage for everyone. There, three layers coexist:

1. Federal Minimum: US$ 7.25/h (mandatory, but other minimums can surpass it)
2. State Minimums: range from US$ 5.15 to US$ 17.50
3. Municipal Minimums: large cities like New York and Los Angeles have their own rates

Who earns this? Young people from age 14, cashiers, attendants, stock clerks, cleaning helpers. Entry-level jobs that are usually poorly paid anyway.

The Comparison with Brazil

This raises an important question: is the minimum wage in the United States really better than in Brazil?

Converting directly, US$ 1,160 into reais (R$ 6,032) is more than the Brazilian minimum of R$ 1,518. But when analyzing purchasing power (PPP), the difference shrinks. One dollar in the US buys fewer things than the equivalent in reais in Brazil. Additionally:

• In Brazil, R$ 1,518 is insufficient in big cities, but social benefits (public health, education) mitigate this
• In the US, US$ 1,160 is frankly inadequate, and you have to pay for health, education, transportation out of pocket

The Reality: No One Lives on Minimum Wage

Both in the US and Brazil, people earning minimum wage are struggling. Many Americans work two or three jobs simultaneously to cover expenses. Others depend on social benefits or family support. It’s not sustainable in the long run.

States like California and Washington increase their minimum wages annually to keep up with inflation. But federal law does not. Meanwhile, the cost of living skyrockets everywhere.

What You Need to Know Before Going

If you’re thinking about moving to the United States, research beforehand:

• What is the minimum wage in the specific state you want
• How much rent costs in that region (it can be 2x, 3x or more)
• If social benefits are available
• If you can find work above the minimum (which is ideal)

The uncomfortable truth is that minimum wage in any country isn’t enough to live with dignity. The difference is that in the US, you face a brutally high cost of living, while in Brazil, despite the challenges, there is coverage of essential services that mitigate this.

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