How much does it really cost to live on minimum wage in the USA in 2025

Many Brazilians dream of moving to the United States, but a fundamental question remains unanswered: what is the minimum wage in the USA and is it enough to survive? Unlike Brazil, which sets a single national value, the American system operates in a decentralized manner. The federal minimum wage has been at US$ 7.25 per hour since 2009, but states and cities have the freedom to establish their own rates. This reality creates a huge variation in earnings: a worker can earn from US$ 7.25 up to US$ 17.50 per hour, depending solely on where they work.

The reality of the American labor market in 2025

In the United States, the concept of the minimum wage in the USA is not uniform as many imagine. Washington DC leads with US$ 17.50/hour, while California, New York, and Washington also offer high values (between US$ 16.50 and US$ 16.66). However, there are states like Georgia and Wyoming where the minimum remains at US$ 5.15/hour — although, in practice, the federal rate of US$ 7.25 prevails for most jobs.

Professionals working in services — restaurant attendants, cashiers, stockers, cleaners, and entry-level operational roles — are the ones who most receive these minimum values. It is worth noting that employees who earn tips may receive an even lower minimum, as additional income comes from the customer.

Converting the US minimum wage to the Brazilian reality

Converting to reais initially creates an illusion of wealth. Considering the approximate exchange rate of R$ 5.20 per dollar in 2025:

• Federal minimum (US$ 7.25/hour): equals R$ 37.70 per hour
• Weekly income of 40h: US$ 290, or about R$ 1,508
• Monthly amount: US$ 1,160, transforming into R$ 6,032

In Washington DC, where the minimum is the maximum (US$ 17.50/hour), the monthly earnings reach US$ 2,800, approximately R$ 14,560.

However, arithmetic conversion does not tell the whole story. The minimum wage in Brazil in 2025 is R$ 1,518, a value that seems significantly lower when converted to dollars. However, the real purchasing power in each country must be analyzed through purchasing power parity (PPC). In this metric, one US dollar buys fewer goods and services compared to the equivalent in reais in Brazil.

Is it feasible to survive on the US minimum wage

The answer, for most situations, is no. Even working 40 hours a week at the US federal minimum, basic expenses consume and exceed the income:

• Cost of living (excluding rent): about US$ 1,185/month
• Median rent: approximately US$ 1,626/month

These numbers show an unsustainable scenario: the minimum earning does not cover even half of essential expenses. States offering higher wages, such as California and DC, face the paradox of having the highest rents in the nation, mitigating any salary advantage.

Earnings calculation structure per hour

To better understand monthly earnings, the calculation remains simple. Multiply the hourly rate by the weekly hours (standard: 40), then by four weeks:

US$ 7.25 × 40 × 4 = US$ 1,160 per month

States with higher minimums, particularly those establishing between US$ 15 and US$ 17.50 per hour, generate monthly incomes ranging from US$ 2,400 to US$ 2,800.

Structural comparison: United States versus Brazil

A crucial distinction between the two countries lies in the model of setting the minimum wage in the USA. Brazil adopts a single national minimum, revised annually by the federal government. The American system operates in layers: there is a federal minimum that coexists with state and municipal rates, creating considerable regional disparities.

This decentralization means that seeking the best minimum wage in the USA necessarily involves researching not only the state but also the specific city. New York and Los Angeles have their own regulations, often higher than the state minimum. The same occurs in Seattle and other metropolises with high living costs.

Practical conclusion for interested Brazilians

The minimum wage in the USA remains a complex and geographically variable topic. While the federal minimum has been frozen since 2009, progressive states have been approving successive increases. For any Brazilian considering moving to work in the United States, the recommendation is twofold: investigate not only the minimum wage in the chosen state but also map the local cost of living before making definitive decisions.