So, many people ask me about how the minimum wage in the United States works, especially Brazilians who are thinking about moving there. The truth is that the system there is quite different from ours.

Here in Brazil, we have a single minimum wage nationwide. Over in the US, it doesn’t work that way. There is a federal minimum of $7.25 per hour, which has been frozen since 2009, but each state, county, and even city can set its own rate. This creates a huge difference depending on where you work.

If you take the federal rate and multiply it by 40 hours of work per week, considering 4 weeks in a month, it comes to around $1,160 per month. But in places like Washington DC, the minimum wage in the United States reaches $17.50 per hour, which amounts to about $2,800 per month. In some smaller states, the rate is much lower, close to the federal minimum.

The interesting thing is that states with high living costs like California ($16.50/hr), New York ($15.50 to $16.50/hr), and Washington ($16.66/hr) have set their own minimum wages well above the federal level. That makes sense because rent in these places is outrageous.

Now, who actually earns the minimum wage in the United States? Basically, those working in operational positions: restaurant staff, supermarket cashiers, stockers, cleaning staff. There’s an important exception: those who receive tips can earn a lower base wage because tips supplement the salary.

But here’s the real problem: can you live on that amount? The answer in most cases is no. The average cost of living without rent is around $1,185 per month, and the average rent is about $1,626. In other words, with the federal minimum of $7.25, the budget doesn’t add up. Even in states with higher minimum wages, rents are also much more expensive.

For those wanting to convert to reais, considering an exchange rate of approximately $1 = R$5.20, the federal minimum would be about R$6,032 per month. It seems quite high compared to our minimum, but the purchasing power is completely different. One dollar there buys fewer things than the equivalent in reais here.

The main point is that while Brazil maintains a single national minimum wage, the US operates with this decentralized system. Some states have been increasing their rates to keep up with inflation and local costs, but the federal minimum has remained frozen for over a decade.

If you’re thinking about working there, the tip is to research not only the minimum wage in the specific state but also the cost of living in that region. Because it’s pointless to earn $17.50 an hour if renting a simple apartment costs $2,500.