Unveiling the American minimum wage in 2025: regional disparities and economic realities

The minimum wage in the United States remains one of the most intriguing issues for those considering moving to the country. Unlike Brazil, which adopts a single nationally defined value, the American structure is decentralized and complex: the federal government has set $7.25 per hour since 2009, but states, counties, and cities have the freedom to set their own minimum wages — creating a variation that reaches up to $10.25 between the lowest and highest hourly pay.

Federal vs. State Structure: Understanding the American System

While the federal minimum wage has remained frozen at $7.25/hour for 16 years, several states have already surpassed $16/hour. New York offers $15.50/hour at the state level and $16.50/hour in the capital; California and Washington mark, respectively, $16.50/hour and $16.66/hour; and the District of Columbia leads with $17.50/hour — the highest in the country.

On the other hand, states like Georgia and Wyoming have official rates of $5.15/hour, although the federal minimum generally applies in practice for most formal workers.

How Much Does It Pay Monthly? The Real Numbers

To understand monthly earnings, it’s essential to remember that American wages are based on hours worked. Considering a standard 40-hour workweek:

Scenario 1: Federal Minimum ($7.25/h)

• Weekly: $290
• Monthly: $1,160

Scenario 2: District of Columbia ($17.50/h)

• Weekly: $700
• Monthly: $2,800

Scenario 3: California ($16.50/h)

• Weekly: $660
• Monthly: $2,640

Converted to reais (approximate exchange rate of R$ 5.20 per dollar), the federal minimum yields about R$ 6,032 per month, while Washington DC reaches approximately R$ 14,560 — differences that reflect the local cost of living.

Who Works for This? Professions and Restrictions

The American minimum wage mainly applies to:

• Restaurant and fast-food attendants
• Cashiers
• Stockers and cleaning assistants
• Supermarket workers
• Entry-level positions in operational sectors

The law covers individuals over 14 years old in regular employment, excluding apprentices and interns. An important nuance: professionals who depend on tips — such as waiters — can receive a lower base salary, as their earnings are supplemented by gratuities.

Cost of Living vs. Earnings: The American Dilemma

Despite seemingly high numbers when converted to reais, the American economic reality is challenging. Basic monthly expenses (excluding rent) reach $1,185, while average rent varies between $1,200 and $1,626 depending on the region.

This means that a worker earning the federal minimum of $1,160/month faces an immediate deficit — their earnings barely cover rent, leaving little for food, transportation, and other essentials. Even in states with higher minimum wages, metropolises like Los Angeles, New York, and Seattle have proportionally high rents, compressing actual purchasing power.

Brazil-United States Comparison: Beyond the Gross Numbers

The minimum wage in Brazil was adjusted to R$1,518 in 2025, while the American federal minimum remains at $1,160 per month. The direct conversion suggests that the American value in reais is significantly higher; however, this analysis is superficial.

Purchasing power parity reveals another reality: one dollar buys fewer goods and services in the US than the equivalent in reais in Brazil. Additionally, the Brazilian model centralizes the definition at the federal level, whereas the United States fragments this decision among federal, state, and municipal levels — resulting in considerable regional disparities.

Perspectives for Those Planning to Move

Brazilian professionals considering migration should research not only the minimum wage of the desired state but also specific costs of rent, transportation, healthcare, and education in the area. In expensive cities, even earnings above the federal minimum may prove insufficient for an adequate quality of life.

The decentralization of the minimum wage in the United States — although criticized for inequality — allows local adjustments that reflect regional realities, unlike the single-model approach in Brazil.