Understand the Minimum Wage in the USA: Values, States, and the Reality of Workers

Understanding the minimum wage in the USA is essential for Brazilians planning to work, study, or live in the United States. Unlike Brazil, which has a single national minimum wage, the American system operates in a decentralized and complex manner. The federal minimum wage in the US has been $7.25 per hour since 2009, but this is only the base — states, counties, and even individual cities have the freedom to set their own rates, often much higher.

This structure creates a highly heterogeneous landscape where a worker can earn anywhere from $7.25 to $17.50 per hour, depending on where they work. Understanding this dynamic is crucial before making any decisions related to employment in the United States.

How Much Is the Actual Value of the Minimum Wage in the United States?

The federal minimum wage in the US remains at $7.25 per hour, a rate frozen for over 15 years. This is the national floor that applies when states do not set their own minimums, but the practical reality is quite different.

Most states have already surpassed this amount significantly. Currently, about 30 states have minimum wages between $11 and $16 per hour. Regions with high living costs — such as New York, Los Angeles, and Seattle — implement their own minimum wages, often above $15 per hour.

Converting to monthly values, considering a 40-hour workweek and 4 weeks per month:

• Federal minimum: approximately $1,160 per month
• States with higher minimums: can reach up to $2,800 per month

The Highest Minimum Wages by Region: From Washington D.C. to the Lowest

The distribution of minimum wages across the US varies dramatically depending on the location. Washington D.C. has the highest minimum wage in the country: $17.50 per hour, resulting in an approximate monthly income of $2,800.

Among states with the highest minimum wages are:

California ($16.50/hour) — in addition to the high minimum, it has differentiated overtime rules. Hours worked after 8 hours in the same day are paid at 1.5x, and after 12 hours at 2x.

Washington ($16.66/hour) — reflects the high cost of living in the Pacific Northwest, especially in cities like Seattle.

New York ($15.50 to $16.50/hour) — the state adopts different rates depending on population density and local costs, with higher wages in New York City and surrounding areas.

Conversely, states like Georgia and Wyoming officially allow a minimum wage of $5.15/hour, but in practice, the federal minimum of $7.25 applies in almost all cases, as workers are entitled to the higher of the two amounts.

How to Calculate Monthly Income Based on Minimum Wage

Wage calculation in the US is based solely on hours worked, making the math relatively straightforward:

Weekly formula: Hourly wage × 40 hours = weekly income

Example: $7.25 × 40 = $290 per week

Monthly formula (assuming 4 weeks): Hourly wage × 40 hours × 4 = monthly income

Example: $7.25 × 40 × 4 = $1,160/month

In states with higher minimum wages, these amounts are proportionally larger. Someone working in Washington D.C. at the local minimum wage of $17.50/hour would earn approximately $2,800 per month.

Who earns this minimum wage? Basically, any worker hired for regular hours starting from age 14, provided they do not fall into special categories such as apprentices, interns, or workers who receive tips as a significant part of their pay. Common jobs include restaurant attendants, cashiers, stock clerks, and cleaning aides.

Comparing the US Minimum Wage with Brazil: Real Purchasing Power

A direct comparison between the US and Brazil minimum wages often causes confusion. Using an approximate exchange rate of $1 = R$5.20, the basic calculation shows:

• US federal minimum: $1,160/month ≈ R$6,032/month
• Brazilian minimum (2025 data): R$1,518/month

Numerically, it appears the US minimum wage is about four times higher. However, this superficial analysis ignores crucial structural factors.

The fundamental difference lies in relative purchasing power. One dollar in the US buys, on average, fewer goods and services than the linear conversion suggests. Basic costs — housing, food, transportation, and healthcare — are proportionally higher in the US. An average rent in medium-sized American cities is around $1,500–$1,800 per month, consuming almost the entire federal minimum wage.

Structurally, Brazil has a single minimum wage set annually by the federal government. The US operates with a hybrid system where the federal minimum coexists with state and municipal minimums, creating significant regional disparities. This decentralization offers greater flexibility for local economies but also results in notable inequality depending on the region.

Is It Possible to Live on This Income?

The straightforward answer is: for most cases, no — at least not comfortably.

Even working the standard 40 hours per week, the federal minimum wage of $1,160/month does not cover basic expenses in many regions. Typical operational costs include:

• Cost of living (excluding rent): around $1,185/month
• Average rent: about $1,626/month
• Total approximate: $2,811/month

With a minimum wage of only $1,160, the math simply doesn’t add up. That’s why many workers supplement their income with multiple jobs (“side hustle”), work overtime, or rely on government benefits.

States with higher minimum wages — like California or Washington D.C. — offer wages that better cover basic expenses, but they also face the paradox of having some of the most expensive rents in the country. Someone earning $2,800 in Washington D.C. still finds their income heavily pressured by local living costs.

The US minimum wage remains a hotly debated political and economic topic. While the federal minimum has been frozen since 2009, states and cities continue approving increases to keep pace with inflation and local costs. For those planning to move to the US, researching not only the state minimum but also the specific cost of living in the region is absolutely essential.