How Much Does It Cost to Work in the United States in 2025: Understand the Minimum Wage by Region

Working in the USA is the dream of many Brazilians, but one central question remains: what is the actual American minimum wage and how does it work in practice? Unlike Brazil, where there is a single national value, the American system is decentralized — meaning your earnings can vary drastically depending on where you work.

The federal minimum established nationwide has been US$ 7.25 per hour since 2009. However, states, counties, and cities have full autonomy to set their own rates, resulting in a range from US$ 5.15 to US$ 17.50 per hour. For those coming from Brazil, this structure may seem chaotic — but that’s precisely how it works.

How the System Works: Decentralization and Local Competition

Unlike the Brazilian approach of a uniform minimum wage, the United States adopts a federal model where each state has decision-making power. Major urban centers like New York, Los Angeles, and Seattle have set their own rates, often well above the federal minimum.

This creates an interesting paradox: a worker in Georgetown, D.C., can earn US$ 17.50 per hour, while another in a rural area of Wyoming earns only US$ 5.15 — although the federal minimum of US$ 7.25 prevails in most practical situations.

How Much Does a Minimum Wage Worker Earn Monthly?

The calculation is simple: multiply the hourly rate by the hours worked. Considering the standard American 40-hour workweek over 4 weeks:

Federal minimum wage: US$ 7.25 × 40 × 4 = US$ 1,160/month

Converting to reais at an approximate rate of R$ 5.20 per dollar: about R$ 6,032/month.

For context, in Washington D.C.:

Local minimum wage: US$ 17.50 × 40 × 4 = US$ 2,800/month (approximately R$ 14,560/month)

The disparity is huge. A worker in a metropolis can earn up to 2.4 times more than a colleague in another region, even performing similar functions.

Who Receives the Minimum Wage in the USA?

The minimum wage applies mainly to:

• Workers aged 14 and above
• Employees in regular shifts (not apprentices)
• Professionals without additional tip-based compensation

The sectors that employ the most minimum wage workers include retail, food service, cleaning, and operational roles. It’s important to note that waiters and other professionals relying on tips may receive a lower base, as tips are legally part of their total compensation.

State-by-State Overview: Where Does One Earn More

The most developed states set rates significantly above the federal:

Northeast Region (higher cost of living):

• D.C.: US$ 17.50/h
• Massachusetts: US$ 15/h
• New York (state): US$ 15.50/h; (NYC and surroundings): US$ 16.50/h

West Region (technology and innovation):

• Washington: US$ 16.66/h
• California: US$ 16.50/h (with multipliers for overtime: 1.5x after 8h/day, 2x after 12h/day)

South Region (lower values):

• Georgia and Wyoming: US$ 5.15/h (although the federal minimum prevails)

This distribution directly reflects local costs of housing, food, and transportation.

Comparison with Brazil: Deceptive Purchasing Power

A superficial comparison suggests that the American minimum wage is “4 times higher” than the Brazilian in reais. But this analysis is misleading.

In 2025, the Brazilian legal minimum is R$ 1,518, while the American (federal) converted amount is around R$ 6,032. However, the cost of living in the USA invalidates this apparent advantage.

Purchasing Power Analysis:

• Basic living costs (excluding rent) in the USA: ~US$ 1,185/month
• Average rent: ~US$ 1,626/month
• Minimum total: ~US$ 2,811/month

With a salary of US$ 1,160, the American worker is US$ 1,651 short of covering basic expenses. In Brazil, although R$ 1,518 is also insufficient, the situation is less critical in smaller cities.

The Purchasing Power Parity (PPP) metric reveals that one dollar in the USA buys less than the equivalent in reais in Brazil — reversing the logic of nominal exchange rates.

Is It Possible to Live on Minimum Wage in the United States?

The practical answer is no, in most cases. Even in states with higher minimums, the challenge remains.

Someone earning the federal minimum wage faces an impossible math problem to cover rent and food. States with high minimums (California, D.C., New York) partially compensate, but their rents are among the most expensive in the country — often US$ 2,000+/month for a studio.

Many Americans need multiple jobs or work overtime to make ends meet. This scenario is structural and has persisted for decades, fueling recurring political debates about wage increases.

The Perspective in Context

The minimum wage in the USA has been frozen at the federal level for 16 years, while states are advancing with their own increases to keep up with inflation. For Brazilians considering moving, the research isn’t limited to the state minimum — it’s essential to investigate housing, transportation, and food costs in the specific region before any decision.