How Much Is the Average Salary Really Worth in the US? Understand the Differences by State in 2025

Most Brazilians dreaming of moving to the United States have a fundamental question: how much do workers earn there? The truth is that the average salary in the US varies greatly — there is no single number that defines the reality of the entire country. Unlike Brazil, which adopts a uniform national minimum wage, the American system is decentralized: it operates with a federal minimum value, but each state, county, and even city can set its own rules.

The Salary System in the US is Radically Different from Brazil

Meanwhile, Brazil works with a single minimum wage of R$ 1,518 in 2025, in the US the scenario is fragmented. The federal floor has been frozen at US$ 7.25 per hour since 2009 — but that’s just the beginning of the story. Many states have already surpassed this amount significantly, offering between US$ 11 and US$ 16 per hour. In large metropolises like New York, Los Angeles, and Seattle, the values are even higher, often above US$ 16 per hour.

This results in a considerable range: a worker can earn from US$ 7.25 up to US$ 17.50 per hour, depending solely on where they work.

How Does the Compensation Calculation Work in the US?

The American system is entirely based on hours. There are no fixed monthly salaries as we are used to — everything is calculated by hours worked.

Conversion to monthly values (considering 40 hours per week):

At the federal minimum of US$ 7.25/h:

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

In Washington D.C., where the average salary in the US is among the highest:

• Monthly: US$ 17.50 × 40 × 4 = US$ 2,800

Who Actually Receives These Values?

Not every worker in the US earns the minimum wage. The law specifically applies to:

• Employees aged 14 and over
• Hired on full-time or part-time basis
• Who do not fall into special categories (apprentices, interns)
• Who do not depend on tips as their main income

Professionals who most frequently earn these amounts include restaurant attendants, cashiers, stock clerks, cleaning aides, and supermarket workers.

Important note: Servers and waiters can receive a significantly lower base salary (up to US$ 2.13 in some states), since tips are considered a legal supplement to wages.

Salary by State: A Heterogeneous Reality

The variation is dramatic when looking at state by state:

States with the Highest Minimum Wages:

• District of Columbia: US$ 17.50/h
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York: US$ 15.50/h (up to US$ 16.50/h in more expensive areas)

States with the Lowest Minimum Wages:

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

Most states fall within the US$ 12 to US$ 14 per hour range, representing a moderate adjustment above the federal minimum.

Converting to Reais: What Does It Mean in Practice?

Many Brazilians do a direct conversion to better understand. With an approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

Federal Minimum:

• Per hour: US$ 7.25 ≈ R$ 37.70
• Monthly: US$ 1,160 ≈ R$ 6,032

Washington D.C.:

• Monthly: US$ 2,800 ≈ R$ 14,560

At first glance, the amounts in reais seem substantial. However, this direct comparison is misleading — the actual purchasing power is quite different.

Purchasing Power: The True Measure

One dollar in the US buys fewer goods and services than R$ 5.20 in Brazil. Experts use the Purchasing Power Parity (PPP) for more accurate comparisons.

Cost of Living in the US:

• Basic expenses (excluding rent): US$ 1,185/month
• National average rent: US$ 1,626/month
• Minimum total: US$ 2,811/month

With the federal minimum of US$ 1,160, it’s clearly not enough. Even in states with higher wages, costs are proportionally higher — California and D.C. have some of the most expensive rents in the country.

Is it Possible to Live on Minimum Wage in the US?

The practical answer is no, in most regions. Working 40 hours a week at the federal minimum, the worker is approximately US$ 1,650 below the minimum needed to cover essential expenses.

Professionals with higher wages (above US$ 16/h) have a better margin, especially if they are single and share apartments. But even so, high-cost regions remain challenging.

Brazil versus US: A Structural Analysis

While Brazil establishes a single, uniform national minimum wage, the American system is decentralized and hybrid. This creates advantages and disadvantages:

Advantages of the American System:

• States adjust according to local realities
• Large cities can compensate for high living costs
• Greater flexibility for individual negotiation

Disadvantages:

• Workers in poorer states earn very little
• Lack of uniform national protection
• Constant pressure on states to raise minimum wages

What Brazilians Need to Know Before Moving

If you are considering moving to the US, it’s not enough to just research the state minimum wage. It is essential to:

1. Investigate the specific cost of living in the city and neighborhood
2. Check for housing assistance or benefits in employment
3. Consider the possibility of securing jobs above the minimum
4. Evaluate the availability of community or government support programs
5. Research local and state taxes that reduce net salary

The average salary in the US remains a complex and regional topic. While the federal amount has been stagnant since 2009, many states are adopting significant increases to keep up with inflation and local realities. For those planning to move, detailed and realistic research is essential — absolute numbers are only half the story.