What is the actual value of the US minimum wage per month in 2025?

Unlike Brazil, which adopts a single value nationwide, the American system operates in a decentralized manner. The federal minimum remains frozen at US$ 7.25 per hour since 2009, but states, counties, and cities have the freedom to set their own levels. This structure creates significant disparities: while some states maintain the federal minimum, others have already reached US$ 17.50 per hour — more than twice as high.

The reality of US minimum wage monthly in numbers

When converting the minimum wage into a monthly amount, the calculation becomes clear. Considering the standard 40-hour workweek:

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

Transforming into reais (approximate exchange rate of R$ 5.20 per dollar), we arrive at R$ 6,032 per month. At first glance, this seems much higher than the Brazilian minimum of R$ 1,518. However, this simplistic analysis masks a more complex reality regarding cost of living and purchasing power.

Geographies of difference: the extremes of the American market

The highest minimum wages

The District of Columbia leads with US$ 17.50/h, resulting in US$ 2,800 per month (approximately R$ 14,560). California and Washington follow closely:

• California: US$ 16.50/h (with overtime rules: 1.5x after 8 hours daily, 2x after 12 hours)
• Washington: US$ 16.66/h
• New York: US$ 15.50 to 16.50/h (depending on location)

The lowest levels

Georgia and Wyoming officially mark US$ 5.15/h, but the federal minimum of US$ 7.25 prevails in practice for most roles.

Who actually earns minimum wage in the United States?

The minimum applies to workers aged 14+ in regular positions, excluding apprentices, interns, and professionals whose main income component is tips. In practice, those most dependent on this amount are:

• Food service attendants
• Cashiers
• Stock personnel
• Cleaning aides
• Retail workers
• Entry-level positions in operational sectors

An important detail: waiters and waitresses often receive a lower base salary, with tips expected as the main component of their income.

The big question: can you survive on this?

The practical answer is discouraging. With the US federal minimum wage of US$ 1,160 per month, workers face costs that don’t add up:

• Basic expenses (food, utilities, transportation): US$ 1,185/month
• Average rent: US$ 1,626/month
• Total: approximately US$ 2,811/month

This means the federal minimum covers only 41% of essential expenses. Even in states with higher wages, the situation remains tight, as these same locations (California, New York, D.C.) have the highest housing costs in the country.

Brazil vs. USA comparison: beyond nominal numbers

Many believe that converting the American minimum wage into reais reveals a clear advantage of the American system. Technically, US$ 1,160 ≈ R$ 6,032 sounds impressive compared to R$ 1,518 in Brazil. However, this analysis ignores crucial factors:

Relative purchasing power: A dollar in the US buys, on average, fewer goods and services than its equivalent in reais in Brazil. The absolute difference in reais does not proportionally translate into a higher quality of life.

Cost structure: While Brazil maintains a single federal minimum, the US operates a mosaic of state minimum wages. This decentralization reflects regional realities — the real estate market in New York is incomparable to inland states.

Income adequacy: Both minimum wages face criticism for being insufficient. In the US, the federal minimum has not kept pace with inflation for 15 years, while in Brazil, annual adjustments still leave limited room for savings or social mobility.

How to calculate your monthly earnings

The math is simple, as the US works on an hourly basis:

Weekly: Hourly wage × 40 hours
Monthly: Hourly wage × 160 hours (approximately 4 weeks)

A worker in New York earning US$ 16/h would earn monthly:
16 × 160 = US$ 2,560/month (about R$ 13,312)

Someone on the federal minimum would reach only:
7.25 × 160 = US$ 1,160/month

The future scenario of the American minimum wage

While the federal government has kept the minimum frozen since 2009, states and cities continue approving local increases to keep up with inflation and economic realities. This trend will likely persist, deepening regional disparities.

For those planning to work or move to the United States, the clear lesson is: researching not only the state wage but also the specific cost of living in the region is absolutely essential. The “US minimum wage monthly” you will receive will determine your financial viability, but only in the context of local expenses.