Understand the Minimum Wage in the United States in 2025: Values, Functioning, and Realities

The US Decentralized Minimum Wage System

Unlike Brazil, which maintains a single national minimum wage, the United States adopts a hybrid and fragmented model. The federal minimum established is US$ 7.25 per hour, maintained since 2009, but each state, county, and even municipality has autonomy to set its own rules. This decentralized structure creates a highly diverse scenario: workers can earn from the federal minimum up to US$ 17.50 per hour, depending solely on where they work.

What is the Current Hourly Rate?

The US federal minimum remains at US$ 7.25/h. However, this figure does not reflect the reality for most workers in major urban centers. States like California, New York, Washington, and the District of Columbia have already significantly surpassed this amount, with minimum wages ranging between US$ 15.50 and US$ 17.50 per hour.

States with Highest and Lowest Minimum Wages in 2025

Highest minimum wages:

• District of Columbia: US$ 17.50/h (national record)
• Washington: US$ 16.66/h
• California: US$ 16.50/h
• New York: US$ 15.50 to US$ 16.50/h (varies by region)

Lower wages:

• Georgia and Wyoming: US$ 5.15/h (but federal prevails in practice)

How Do Weekly and Monthly Calculations Work?

All of the American salary structure is based on an hourly system. The calculation is straightforward and simple:

Weekly: hourly wage × 40 hours = weekly income

Example with federal minimum: 7.25 × 40 = US$ 290/week

Monthly: hourly wage × 40 × 4 weeks = monthly income

Example with federal minimum: 7.25 × 40 × 4 = US$ 1,160/month

In regions with higher minimum wages, this amount can easily reach US$ 2,500-2,800 per month.

Conversion to Reais: How Much Is It in Brazilian Currency?

Considering the dollar exchange rate in 2025 (approximately R$ 5.20):

• Federal minimum per hour: US$ 7.25 ≈ R$ 37.70
• Per week (40h): US$ 290 ≈ R$ 1,508
• Federal monthly (federal): US$ 1,160 ≈ R$ 6,032

In Washington DC, where the highest minimum wages are in effect:

• Monthly: US$ 2,800 ≈ R$ 14,560

Comparison with Brazil: Different Realities

In 2025, Brazil set its minimum wage at R$ 1,518, while the US federal minimum results in approximately R$ 6,032 in direct conversion. Despite this seemingly significant nominal difference, the real analysis is more complex.

The central issue is not just the currency conversion but the effective purchasing power in each country. A salary of US$ 1,160 in the US, although numerically higher when converted, often does not cover essential expenses in many American states. Housing, food, and services costs in the US consume proportionally more than in Brazil.

Experts use the Purchasing Power Parity (PPP) for these analyses, demonstrating that one dollar in the US buys fewer goods and services than expected by direct conversion.

Who Earns the Minimum Wage in the US?

The minimum wage applies to workers:

• Aged 14 or older
• Employed for standard hours
• Without apprentice or intern status
• Whose compensation does not primarily depend on tips

The professionals most frequently earning the minimum wage work in:

• Restaurant and fast-food service
• Cashier operations in retail
• Stock and logistics
• Cleaning and maintenance
• Supermarkets and retail in general
• Entry-level operational positions

Important note: Waiters and professionals who receive tips may earn a lower base salary, as tips formally supplement their total income.

Special Shifts and Overtime Hours

In California, state legislation establishes specific rules for overtime:

• Beyond 8 hours daily: pay at 1.5x the hourly rate
• Beyond 12 hours daily: pay at 2x the hourly rate

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

The honest answer is: in most scenarios, no. Even working 40 hours a week, the federal minimum presents significant budget deficiencies.

Average monthly costs in the US:

• Cost of living (excluding rent): ~US$ 1,185
• Average rent: ~US$ 1,626
• Total: ~US$ 2,811

With a federal minimum wage of only US$ 1,160, the budget deficit is evident. States with higher minimum wages, like California or Washington DC, offer higher earnings but also have the most prohibitive housing costs in the country.

Final Considerations

The minimum wage in the United States remains a decentralized and complex topic. While the federal minimum has been frozen since 2009, states and municipalities continue approving adjustments to keep pace with inflation and local market dynamics. For Brazilians considering moving or working abroad, thorough research should not be limited to the state value alone but include a comprehensive analysis of regional living costs.

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