Understand the minimum wage system in the United States: state-by-state values and comparison with Brazil

Many Brazilians planning to work or study in the United States have questions about how the American minimum wage works. The answer involves understanding a system quite different from Brazil’s: while Brazil has a single national minimum wage, the U.S. operates with a decentralized structure where the federal minimum wage coexists with state and local minimums. This creates a complex reality where workers can earn anywhere from $7.25 to $17.50 per hour, depending entirely on the region where they work.

The U.S. Minimum Wage System: How It Really Works

The American wage system is fundamentally different from the Brazilian model. The federal minimum wage in the U.S. is set at $7.25 per hour — a rate that has remained frozen since 2009. However, this is only the national floor; most workers earn more than that.

States have full autonomy to set their own wage levels, resulting in roughly half of the states adopting minimum wages significantly higher than the federal level. Major urban centers like New York, Los Angeles, and Seattle go even further: they implement city-specific minimum wages, usually well above state levels. Washington D.C., for example, has established the highest minimum in the country: $17.50 per hour.

This decentralization means that a restaurant worker in Wyoming might earn a drastically different amount than a colleague doing the same job in California or D.C.

How Much Does a Federal Minimum Wage Worker Earn Monthly?

Since the U.S. system is based on hourly pay, monthly income depends directly on hours worked. Considering the federal minimum of $7.25/hour and a standard 40-hour workweek:

7.25 × 40 hours × 4 weeks = approximately $1,160 per month

This calculation reflects the reality for workers in states that still use the federal minimum. However, in jurisdictions with higher minimums, the numbers change significantly. In Washington D.C., with the same hours:

17.50 × 40 hours × 4 weeks = $2,800 per month

The difference between these two scenarios — $1,160 versus $2,800 — demonstrates the dramatic impact that geographic location has on low-wage workers’ income.

State Variations: How Minimum Wages Differ Across the U.S.

Different states have set different levels, reflecting their local economic realities:

States with the highest minimum wages:

• District of Columbia: $17.50/hour
• Washington: $16.66/hour
• California: $16.50/hour
• New York: $15.50/hour (state), $16.50/hour (NYC and nearby counties)
• Massachusetts and Connecticut: between $15 and $15.60/hour

States still using the federal minimum or lower values:

• Georgia and Wyoming: officially allow $5.15/hour, but in practice, the federal $7.25 applies to most employers

This disparity reflects regional living costs. Cities and states with heated markets and high housing costs have set higher minimums to help workers cover basic expenses.

Who Earns the Minimum Wage in the U.S.?

The minimum wage applies to workers who are:

• At least 14 years old
• Employed in regular hours (not apprentices or interns)
• Not primarily paid through tips
• In non-specialized or operational roles

Most commonly, restaurant attendants, cashiers, stockers, cleaning aides, and supermarket employees earn minimum wage. An important note: tipped workers — such as waiters — can receive a lower base salary, as tips supplement their income up to the federal minimum.

How to Calculate Your Potential Minimum Wage in the U.S.

The calculation is straightforward, following this basic formula:

Weekly: hourly wage × 40 hours = weekly earnings
Example: 7.25 × 40 = $290

Monthly: hourly wage × 40 hours × 4 weeks = approximate monthly earnings
Example: 7.25 × 40 × 4 = $1,160

In states with higher minimums like Washington or California, the monthly total easily exceeds $2,500.

Comparison: Minimum Wage in the U.S. vs. Brazil

A superficial analysis might suggest that the U.S. minimum wage is dramatically higher than Brazil’s. In 2026, the U.S. federal minimum corresponds to about $1,160 per month, while Brazil’s is around R$1,500 to R$1,600. Converting to dollars (roughly R$5.20 per dollar), the American value in reais would be about R$6,000.

However, this direct comparison masks a more complex reality related to actual purchasing power. One dollar spent in the U.S. does not offer the same consumption potential as the equivalent amount in reais in Brazil. Experts use the concept of Purchasing Power Parity (PPP) for more accurate analyses: through this lens, the absolute difference in reais does not translate into proportionally equivalent quality of life.

Another structural factor: Brazil has a single national minimum wage set annually by the federal government. The U.S. operates with a hybrid model where the federal minimum coexists with state and local floors, creating extreme regional disparities.

Is It Really Possible to Live on Minimum Wage in the U.S.?

The straightforward answer for most cases is no. Even working the standard 40 hours a week, the federal minimum wage does not cover basic expenses in nearly any American region:

Average monthly costs in the U.S.:

• Cost of living (food, transportation, utilities — excluding rent): $1,185
• Average rent (1-bedroom apartment): $1,626
• Basic total: $2,811

Compare this with the federal minimum: $1,160. The math simply doesn’t add up.

Even in states with higher minimums, the situation remains challenging. California and D.C., which offer the highest minimum wages, also have the most expensive rents. A worker in D.C. earning $2,800 monthly (the highest minimum) faces housing costs that often consume 50% or more of their income.

Conclusion

The U.S. minimum wage reflects a decentralized system that creates different realities depending on location. While the federal minimum has been stagnant for over 15 years, many states and cities have implemented significant increases to keep pace with inflation and rising local costs. For anyone considering working in the U.S., careful research not only of the state minimum wage but also of the specific regional cost of living is essential before making employment or relocation decisions.