How Much Is the Minimum Wage Really Worth in the USA in 2025? A Complete Guide for Those Who Want to Work Abroad

Working in the United States is the dream of many Brazilians, but before packing your bags, it is essential to understand how the minimum wage system works there. Unlike Brazil, which has a single, nationwide minimum wage, the American system is decentralized and varies significantly depending on the state. The minimum wage in the United States has a peculiarity: although there has been a federal floor of US$ 7.25 per hour since 2009, states, counties, and cities have the freedom to set their own values, often much higher.

The Current Scenario: Federalism vs. Centralism

While Brazil adopts a centralized model with a single minimum wage set annually by the federal government, the minimum wage system in the United States operates in a hybrid manner. The federal floor of US$ 7.25/hour functions only as a minimum ceiling — in practice, workers in states like California, New York, and Washington earn significantly more.

This setup creates an interesting reality: a worker can earn from US$ 7.25 up to US$ 17.50 per hour depending solely on where they work. Washington D.C., although not a state, offers the highest minimum wage in the nation, at US$ 17.50 per hour.

How the US Minimum Wage is Calculated and Converted

Unlike Brazil, where monthly salary is commonly discussed, in the United States, compensation is always calculated per hour. To find out how much a worker earns monthly, the formula is:

Hourly rate × 40 hours per week × 4 weeks = Monthly salary

With the federal floor of US$ 7.25:

• Weekly earnings: US$ 290
• Monthly earnings: US$ 1,160

Converting to reais (considering the 2025 exchange rate of around R$ 5.20 per dollar):

• Monthly: approximately R$ 6,032

In Washington D.C., where the floor is US$ 17.50:

• Monthly earnings in dollars: US$ 2,800
• Equivalent in reais: R$ 14,560

Regional Disparities: The Map of the American Minimum Wage

The highest floors in the country are found in:

Washington D.C. — US$ 17.50/h (the highest) Washington (state) — US$ 16.66/h California — US$ 16.50/h (with special rules for overtime: 1.5x after 8 hours daily, 2x after 12 hours) New York — US$ 15.50/h in the state, potentially reaching US$ 16.50/h in regions like NYC and adjacent counties Massachusetts and Maryland — both with US$ 15/h

On the other end, Georgia and Wyoming officially have US$ 5.15/h, although in practice the federal rate of US$ 7.25 tends to prevail for most employers.

Who Actually Receives These Values?

The minimum wage in the United States applies to workers:

• Aged 14 and older
• Employed for regular hours
• Not in apprenticeship programs
• Whose pay does not primarily depend on tips

Sectors that employ the most minimum wage workers include: restaurant and fast-food attendants, cashiers, stockers, cleaning assistants, and entry-level supermarket roles.

An important note: waiters and other professionals who live off tips may receive a lower base salary, as tips supplement their total income.

Purchasing Power: The Reality Behind the Numbers

The most relevant comparison between the minimum wage in the US and Brazil goes far beyond direct conversion to reais. In 2025, the Brazilian floor is R$ 1,518 per month, while the federal US minimum is US$ 1,160/month.

Numerically, it appears that Americans earn approximately 4 times more when converted. However, this superficial analysis ignores a crucial factor: purchasing power parity.

In the United States, one dollar buys fewer goods and services than the equivalent in reais in Brazil. This means that the absolute difference does not translate proportionally into quality of life. For example, rent in Manhattan can consume 70% of a minimum wage worker’s salary, leaving little for other expenses.

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

The straightforward answer is: in most cases, extremely challenging.

Essential American costs (excluding rent) amount to around US$ 1,185 per month, while average rents are about US$ 1,626. Adding up: US$ 2,811/month in basic expenses.

A worker earning the federal minimum of US$ 1,160 cannot cover these minimum expenses — they are short by US$ 1,651 each month.

Even in states with higher minimum wages, this challenge persists. California and Washington D.C., which offer the highest floors, also have the most expensive rents in the nation. Therefore, the salary advantage is quickly neutralized by the cost of living.

The US Minimum Wage System: Decentralized Complexity

What makes the US minimum wage system so complex is precisely its federalist structure. Each state makes its own decisions based on local cost of living, inflation, and political pressures. This results in extreme geographic variation — a worker crossing a state border can literally see their hourly rate revalued or devalued instantly.

Meanwhile, the federal floor has remained frozen at US$ 7.25 since 2009, increasingly disconnected from economic realities. Progressive states have responded with increases, creating this mosaic of wages that characterizes the contemporary US labor market.

Conclusion: Research Before Deciding

For Brazilians considering working in the United States, research must go beyond the nominal salary. It is essential to investigate:

• The specific state minimum wage where you plan to work
• The local cost of living (housing, food, transportation)
• Whether the region offers opportunities for additional income
• How tips can influence your actual remuneration

The US minimum wage remains a highly relevant topic for those planning to immigrate. Armed with this comprehensive information about values, calculations, and economic realities, you will be better prepared to make an informed decision about your professional future abroad.