How the minimum wage works state by state in the American country
The minimum compensation system in the USA differs significantly from the Brazilian model. While our country establishes a single national floor, Americans adopt a decentralized structure where multiple levels of government — federal, state, and municipal — set their own rules. The federal minimum has remained at US$ 7.25 per hour since 2009, but most states have surpassed this amount, creating a variation ranging from US$ 7.25 to US$ 17.50 per hour depending on the region.
How much income does a professional earning the minimum receive?
The American calculation basis is simple: hour × number of hours worked. Assuming the standard 40-hour workweek:
This amount only considers the federal minimum. Urbanized states with a high cost of living offer significantly higher wages. In the District of Columbia, for example, a professional working at the minimum wage in the United States per month earns approximately US$ 2,800, a difference of over 140% compared to the federal minimum.
Who works earning the minimum?
This remuneration applies to professionals:
Aged 14 and above
Employed under regular working hours
Not classified as apprentices or interns
Whose compensation does not primarily depend on tips
The sectors that most absorb this salary range include food service establishments, cashier operations, stock replenishment in stores, and cleaning roles. It is important to note that professionals in commissioned positions (such as waiters) often receive a lower base supplemented by tips.
Variation of wages among the main American states
States with the highest minimum wages
District of Columbia: US$ 17.50/h — the highest in the country, reflecting the demand of the Washington labor market.
Washington: US$ 16.66/h — due to the high cost of housing and living in the Pacific region.
California: US$ 16.50/h — with specific regulations for overtime (1.5x above 8 hours daily; 2x above 12 hours).
New York: US$ 15.50/h for the state; US$ 16.50/h in high-demand metropolitan areas like New York City.
States with lower levels
Georgia and Wyoming set US$ 5.15/h in their state legislation, but in practice, the federal minimum of US$ 7.25 prevails for most occupations, functioning as a mandatory minimum ceiling.
How to translate wages into monthly values and in reais
Using the approximate exchange rate of US$ 1 = R$ 5.20 in 2025:
Federal minimum per hour: US$ 7.25 ≈ R$ 37.70
Weekly earnings (40h): US$ 290 ≈ R$ 1,508
Monthly income: US$ 1,160 ≈ R$ 6,032
For higher-paying regions, such as the District of Columbia:
Monthly earnings: US$ 2,800 ≈ R$ 14,560
Comparison with the Brazilian minimum wage
Brazil adopts R$ 1,518 as the minimum in 2025, while the American federal equivalent totals US$ 1,160 monthly. Converted to the same currency, American figures seem significantly higher (about 4 times). However, this superficial analysis does not capture the full economic reality.
The more accurate metric is purchasing power parity (PPP). One dollar in the USA buys proportionally fewer products and services than the equivalent amount in reais in Brazil. Additionally, structural costs — rent, transportation, food — consume a larger percentage of American income, making the situation less advantageous than the direct conversion suggests.
Structurally, Brazil maintains a centralized model while the USA operates with regional decentralization, resulting in more pronounced geographic disparities.
Is it possible to live on minimum wage in the USA?
The answer is challenging. Even working 40 hours a week, the federal minimum does not cover basic expenses:
Cost of living (excluding housing): US$ 1,185/month
Average rent: US$ 1,626/month
Total approximate: US$ 2,811/month
The federal minimum wage of US$ 1,160 is significantly below. States with higher minimums offer higher incomes, but simultaneously have the most expensive rents in the country — creating a scenario where difficulty persists at different levels.
Final overview
The minimum wage in the USA per month varies dramatically depending on the jurisdiction. While the federal minimum has remained stagnant for 16 years, states and municipalities implement continuous adjustments to keep up with inflation and regional economic realities. For Brazilians considering moving to the USA, researching not only the state minimum but also the cost of living in the specific area is absolutely essential before making any professional decision.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
How much do workers earn in the United States in 2025: a state-by-state overview
How the minimum wage works state by state in the American country
The minimum compensation system in the USA differs significantly from the Brazilian model. While our country establishes a single national floor, Americans adopt a decentralized structure where multiple levels of government — federal, state, and municipal — set their own rules. The federal minimum has remained at US$ 7.25 per hour since 2009, but most states have surpassed this amount, creating a variation ranging from US$ 7.25 to US$ 17.50 per hour depending on the region.
How much income does a professional earning the minimum receive?
The American calculation basis is simple: hour × number of hours worked. Assuming the standard 40-hour workweek:
Monthly calculation: 7.25 × 40 hours × 4 weeks = US$ 1,160/month
This amount only considers the federal minimum. Urbanized states with a high cost of living offer significantly higher wages. In the District of Columbia, for example, a professional working at the minimum wage in the United States per month earns approximately US$ 2,800, a difference of over 140% compared to the federal minimum.
Who works earning the minimum?
This remuneration applies to professionals:
The sectors that most absorb this salary range include food service establishments, cashier operations, stock replenishment in stores, and cleaning roles. It is important to note that professionals in commissioned positions (such as waiters) often receive a lower base supplemented by tips.
Variation of wages among the main American states
States with the highest minimum wages
District of Columbia: US$ 17.50/h — the highest in the country, reflecting the demand of the Washington labor market.
Washington: US$ 16.66/h — due to the high cost of housing and living in the Pacific region.
California: US$ 16.50/h — with specific regulations for overtime (1.5x above 8 hours daily; 2x above 12 hours).
New York: US$ 15.50/h for the state; US$ 16.50/h in high-demand metropolitan areas like New York City.
States with lower levels
Georgia and Wyoming set US$ 5.15/h in their state legislation, but in practice, the federal minimum of US$ 7.25 prevails for most occupations, functioning as a mandatory minimum ceiling.
How to translate wages into monthly values and in reais
Using the approximate exchange rate of US$ 1 = R$ 5.20 in 2025:
For higher-paying regions, such as the District of Columbia:
Comparison with the Brazilian minimum wage
Brazil adopts R$ 1,518 as the minimum in 2025, while the American federal equivalent totals US$ 1,160 monthly. Converted to the same currency, American figures seem significantly higher (about 4 times). However, this superficial analysis does not capture the full economic reality.
The more accurate metric is purchasing power parity (PPP). One dollar in the USA buys proportionally fewer products and services than the equivalent amount in reais in Brazil. Additionally, structural costs — rent, transportation, food — consume a larger percentage of American income, making the situation less advantageous than the direct conversion suggests.
Structurally, Brazil maintains a centralized model while the USA operates with regional decentralization, resulting in more pronounced geographic disparities.
Is it possible to live on minimum wage in the USA?
The answer is challenging. Even working 40 hours a week, the federal minimum does not cover basic expenses:
The federal minimum wage of US$ 1,160 is significantly below. States with higher minimums offer higher incomes, but simultaneously have the most expensive rents in the country — creating a scenario where difficulty persists at different levels.
Final overview
The minimum wage in the USA per month varies dramatically depending on the jurisdiction. While the federal minimum has remained stagnant for 16 years, states and municipalities implement continuous adjustments to keep up with inflation and regional economic realities. For Brazilians considering moving to the USA, researching not only the state minimum but also the cost of living in the specific area is absolutely essential before making any professional decision.