How much do you really earn with the minimum wage in the USA? Complete analysis of the monthly values in 2025

Planning to move to the United States? One of the first questions for those intending to work there is precisely understanding how compensation works. Unlike Brazil, which has a single national minimum wage set by the federal government, the American system is much more decentralized and complex. The result is a significant disparity: while some states have maintained the federal minimum of US$ 7.25 per hour since 2009, others like Washington D.C. reach up to US$ 17.50 — more than double.

For Brazilians considering the possibility of working in the USA, understanding this structure is essential. The question is not just “how much do I earn at the minimum wage,” but mainly: is it possible to live on that?

How the minimum wage system works in the United States

Unlike Brazil, there is no single mandatory value across the entire country. The structure is hierarchical: there is the federal minimum (US$ 7.25/h), but states, counties, and even municipalities can set their own limits — and almost always, these values are higher.

When a worker is in a jurisdiction with a higher state or municipal minimum wage, they automatically receive the higher amount. This flexibility reflects the administrative autonomy of each region but also creates paradoxical scenarios: a worker can earn completely different amounts doing exactly the same job in two neighboring cities.

US minimum wage monthly in numbers: what is it really?

Converting hours to a monthly perspective (considering 40 hours per week, 4 weeks of work):

Basic Federal Scenario:

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

In reais (approximate exchange rate of R$ 5.20 per dollar): approximately R$ 6,032 per month

However, the reality is that most American workers earn well above that. economically developed states like California (US$ 16.50/h), New York (US$ 15.50 to US$ 16.50/h), and Washington (US$ 16.66/h) offer much higher minimums:

• California: US$ 2,640 monthly (US$ 16.50 × 160h)
• Washington: US$ 2,666 monthly (US$ 16.66 × 160h)
• Washington D.C.: US$ 2,800 monthly (US$ 17.50 × 160h) — the highest in the country

Comparison of minimum wages: where do the US stand in relation to Brazil?

This comparison often causes confusion. Numerically, US$ 1,160 converted to reais seems quite attractive compared to the Brazilian minimum wage of R$ 1,518 (2025). However, this superficial analysis ignores a crucial factor: purchasing power.

A dollar spent in New York does not buy the same as a direct conversion would suggest. Housing, food, transportation, and healthcare costs in the US are significantly higher than in Brazil. Experts often use Purchasing Power Parity (PPP) for more realistic analyses, which show less dramatic differences.

Who works for the minimum wage in the US?

Generally, entry-level occupations such as:

• Restaurant and fast-food attendants
• Cashiers in retail
• Stockers
• Cleaning assistants
• Supermarket employees

Professionals with tips (waiters, baristas) may receive an even lower base salary, supplemented by tips — a model that works differently from Brazil.

The minimum working age is 14 years, and apprentices or interns may have reduced wages in some states.

Regional wage mapping: where to earn more?

States with higher minimum wages tend to be those with higher living costs and economic development:

Top of the list:

• Washington D.C.: US$ 17.50/h
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• Larger cities in New York (larger cities): US$ 16.50/h
• Massachusetts: US$ 15.00/h

Bottom of the list:

• Georgia and Wyoming: US$ 5.15/h (but the federal minimum of US$ 7.25 prevails in most cases)
• Several southern states: US$ 7.25/h (following the federal minimum)

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

The answer is generally no, especially in big cities.

Calculating basic monthly costs:

• Cost of living (excluding housing): US$ 1,185
• Average rent: US$ 1,626
• Total approximate: US$ 2,811

With the federal minimum wage of US$ 1,160, it is impossible to cover these expenses. Even in states with higher minimums, rents follow suit: in Washington D.C. (US$ 2,800/month salary), the average rent exceeds US$ 2,000.

This explains why many Americans need to work multiple jobs or rely on social benefits to make ends meet.

Historical evolution: when was the minimum wage frozen?

The US federal minimum of US$ 7.25 has remained unchanged since 2009 — over 15 years. During this period, there has been significant inflation, and the purchasing power of this amount has decreased substantially. States and cities have recognized this and approved their own increases, creating the current disparity.

For comparison: in 2022, some states already had minimum wages above US$ 15, indicating a clear trend of rising wages that continued into 2025.

Quick calculation of your potential monthly salary

Simple method:

• Determine your hourly wage (research for the specific state)
• Multiply by 160 (40h × 4 weeks)
• The result is your gross monthly salary

Example: If you earn US$ 15/h → 15 × 160 = US$ 2,400/month

Important: this is the gross amount. You will need to deduct federal, state taxes, social security contributions, and health insurance.

Final tips for those wanting to work in the US

1. Research the specific state — don’t assume everyone earns US$ 7.25
2. Check local living costs — especially rent
3. Consider jobs paying above the minimum — most vacancies offer more
4. Understand that gross salary ≠ net salary — tax deductions are substantial
5. If you have professional training, you can earn much more than the minimum

The minimum wage in the US is just the floor. For a successful move, it’s best to plan to earn above that.