How does the US minimum wage work and vary between regions in 2025

Understanding the US minimum wage requires abandoning the common linear thinking in Brazil. While here there is a single national reference, in the United States the system is decentralized and complex: there is a federal floor of US$ 7.25 per hour established in 2009, but states, counties, and cities have set their own values, causing wages to vary drastically from US$ 5.15 to US$ 17.50 depending on the location.

The regional disparity that defines the US minimum wage

The scenario is one of genuine fragmentation. While Georgia and Wyoming maintain wages close to the federal floor (US$ 5.15/h), the District of Columbia jumped to US$ 17.50/h — a difference of over 200% between regions. Washington, California, and New York form the trio of highest floors, all above US$ 16/h, reflecting the explosive cost of living in these areas.

This variation is not trivial: a worker in Georgia earns approximately US$ 1,030 monthly (calculated on 40 hours per week), while their colleague in Washington DC reaches US$ 2,800. In the same country, same economy. This reveals an uncomfortable truth: the US minimum wage depends less on qualification and more on geography.

Who earns and how the calculation works

The floor applies to workers aged 14 and over who are regularly employed, excluding apprentices, interns, and especially those who live off tips. Waiters, restaurant attendants, and similar professionals often receive much lower base amounts, compensated by the expectation of tips.

The calculation is straightforward: multiply the hourly wage by the total weekly hours. In most states, 40 hours per week in a month yields:

hourly wage × 40 × 4 = monthly amount

In California (US$ 16.50/h), this results in US$ 2,640. In New York (US$ 15.50/h), approximately US$ 2,480. Even in Washington, which is among the highest, the calculation remains simple — but the result is never trivial.

Converting to reais: the Brazilian perspective

Considering the dollar at around R$ 5.20 in 2025, the US minimum wage converted reveals impressive numbers at first glance:

• Federal (US$ 7.25/h): R$ 37.70 per hour, approximately R$ 6,032 monthly
• Washington DC (US$ 17.50/h): R$ 91 per hour, about R$ 14,560 monthly

These values seem astronomical compared to the Brazilian minimum wage of R$ 1,518. But the illusion quickly disappears when considering purchasing power.

The reality behind the numbers: can you live?

Honestly, no. Even in states with higher floors, the math is challenging. An average rent in the US costs between US$ 1,200 and US$ 1,800 per month, depending on the region. Add food (US$ 300-400), transportation (US$ 200-300), and basic services (US$ 150-200), and a federal minimum wage of US$ 1,160 evaporates instantly.

States with higher wages like California offer a better reality — until discovering that rent there is US$ 2,000+. New York follows the same pattern: higher wages, but costs proportionally higher. It’s a race where the destination never gets closer.

The fragmented model of the US minimum wage

The decentralized structure represents a conscious political choice. While Brazil determines wages nationally, the United States leaves room for states and municipalities to respond to local realities. In theory, it makes sense. In practice, it creates a confusing patchwork where two American citizens face completely different economic realities under the same flag.

The US minimum wage in 2025 remains federally frozen since 2009, while accumulated inflation has exceeded 35%. Some states have compensated. Many have not. The result is a country where location matters as much as, if not more than, profession.