## How the Minimum Wage Works in the USA: Structure, Variations, and Financial Reality

Many Brazilians planning to work in the United States have the same question: what is the minimum wage in the USA and how does it actually work? The answer is more complex than it seems. Unlike Brazil, which adopts a single national minimum wage, the American system is decentralized and allows each state — and even cities — to set their own rates. The result is a wage range that varies between US$ 7.25 and US$ 17.50 per hour, depending on where you work.

## The Federal Structure: The Foundation for the Entire Nation

The US federal minimum wage has been set at US$ 7.25 per hour since 2009 — over 15 years without any adjustment. This amount represents the legal minimum that companies must pay in any American state, but in practice, it functions as a lower floor that many territories have already significantly surpassed.

In practice, many progressive states already adopt rates well above this baseline. California, New York, Washington, and the District of Columbia lead with wages between US$ 15.50 and US$ 17.50 per hour. This decentralization creates a scenario where your monthly earnings depend solely on where you manage to find employment.

## Conversion to Reais and Actual Purchasing Power

Converting the minimum wage in the USA to Brazilian currency often causes confusion. With an approximate exchange rate of US$ 1 = R$ 5.20 in 2025:

**Federal Minimum (US$ 7.25/h):**
- Weekly income (40h): US$ 290 ≈ R$ 1,508
- Monthly income: US$ 1,160 ≈ R$ 6,032

**District of Columbia (US$ 17.50/h):**
- Monthly income: US$ 2,800 ≈ R$ 14,560

Although the amount in reais seems attractive, what truly matters is the local purchasing power. One dollar in the USA buys fewer products and services than the direct conversion suggests. The average rent costs US$ 1,626 per month, basic expenses reach US$ 1,185 — numbers that challenge any federal minimum wage earner.

## Comparison: United States vs Brazil

The comparison between the two countries reveals more than just absolute numbers:

**Brazil 2025:** Minimum wage = R$ 1,518 (national and single)
**USA 2025:** Federal minimum wage = US$ 1,160 (no reajustment for years; states may pay more)

The fundamental structural difference is key: while Brazil maintains an equal minimum wage for all formal workers, the United States operates with a fragmented system that amplifies regional inequalities. A worker in Georgia earns US$ 5.15 (compared to the federal minimum), while in Washington, they earn US$ 16.66 — more than three times the federal rate.

## Highlights of Minimum Wages by Location

**Highest Wages:**
- District of Columbia: US$ 17.50/h
- Washington: US$ 16.66/h
- California: US$ 16.50/h
- New York: US$ 15.50 to US$ 16.50/h (varies by region)

**Lowest Wages:**
- Georgia and Wyoming: US$ 5.15/h (federal minimum of US$ 7.25 applies in most cases)

## Practical Calculation of Monthly Earnings

The American remuneration system is based on hours, making calculations easier:

**Formula:** Hourly rate × 40 hours × 4 weeks

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

In Washington DC:
17.50 × 40 × 4 = US$ 2,800/month

## Who Earns Minimum Wage and Practical Limitations

The US minimum wage applies to regular workers aged at least 14, hired full-time or part-time. Operational professions such as restaurant attendants, cashiers, stockers, and cleaning aides make up most beneficiaries.

An important caveat: employees who receive tips (waiters, bartenders) can earn a lower base salary, compensated by tips. In these cases, the employer is responsible for ensuring that total income reaches at least the minimum wage.

## Is It Feasible to Live Only on Minimum Wage?

The straightforward answer is no, in most scenarios. Working 40 hours a week at the US federal minimum:

**Average Monthly Expenses:**
- Rent: US$ 1,626
- Food and utilities: US$ 1,185
- Total: US$ 2,811

**Federal Minimum Wage:** US$ 1,160

The deficit is clear. Even in states with higher wages like California or D.C., rents are proportionally more expensive, neutralizing the salary advantage. The inevitable conclusion is that the minimum wage in the USA, at any level, functions more as supplementary or transitional income rather than sustainable long-term support.

## Final Considerations for Brazilian Applicants

The minimum wage in the USA remains a decentralized and complex topic. While the federal minimum wage has been frozen since 2009, progressive states continue approving increases to keep up with local inflation. Before making any move to work in the United States, research not only the state rate but also the specific cost of living in the city where you plan to reside.