Whenever I research the US minimum wage in 2025, I am surprised by how many people misunderstand how the system works there. Most think it’s the same as Brazil, with a single national value, but it’s quite different.

The reality is that the US federal minimum wage has been frozen at $7.25 per hour since 2009. That’s right, over 15 years without an increase in the federal floor. But here’s the important detail: states, cities, and even counties can set their own higher values. So you have workers earning from $7.25 up to $17.50 per hour, depending on where they work.

Do you want to know how much that is per month? Considering the federal minimum with a standard 40-hour workweek, it’s about $1,160 per month. But in places like Washington D.C., which has the highest minimum wage in the US in 2025 ($17.50/hr), it reaches $2,800 per month. California and New York are also well above, with $16.50 and $15.50 respectively.

The calculation is simple: multiply the hourly rate by 40 hours a week and then by 4 weeks. But the truth that no one talks about is that even with these numbers, in most states it’s not enough to live on minimum wage alone. The average cost of living (excluding rent) is around $1,185 per month, and rent costs about $1,626. In other words, the numbers don’t add up.

Compared to Brazil, the US minimum wage in reais is quite higher nominally (around R$6,000 considering the exchange rate). But purchasing power is a different story. One dollar in the US buys less than one real converted here in Brazil. Additionally, the cost of living there is insanely higher in almost everything.

Those earning this floor are mainly restaurant attendants, cashiers, stock clerks, and cleaning staff. And there’s a detail: waiters and others who receive tips can earn less than the floor, because tips supplement their income. It’s a very different system from what we have here.

The most interesting thing is that the US minimum wage in 2025 varies so much that it’s practically impossible to make a generic comparison. Each state has its own reality. Georgia and Wyoming are still technically at $5.15/hr, but the federal floor prevails in practice. Meanwhile, progressive states have already adopted much higher values to keep up with inflation.

For those thinking about moving there, the advice is: don’t just look at the minimum wage. Research the specific cost of living in the city, because in New York or Los Angeles you’ll need to earn much more to have a good quality of life.