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I was researching what it's like to work in the US and found something quite interesting about the minimum wage there. People think it's a single value, like here in Brazil, but that's not the case at all.
So, the federal minimum wage has been at US$ 7.25 per hour since 2009 — literally frozen for over a decade. But here’s the detail: each state, each city can set its own minimum. This creates an interesting mess where you can earn anywhere from US$ 7.25 to US$ 17.50 depending on where you're working.
I found it curious because Washington DC, for example, has the highest minimum wage in the country: US$ 17.50/hour. California is at US$ 16.50, New York at US$ 15.50. Meanwhile, some states are still close to the federal floor. Converting to reais (approximately R$ 5.20 per dollar), the federal minimum would be about R$ 37.70 an hour, which amounts to roughly R$ 6,032 per month for a 40-hour week.
But here’s the real problem: earning that doesn’t mean you can live comfortably. The average cost of living in the US is around US$ 1,185 per month (excluding rent), and the average rent alone is US$ 1,626. In other words, with the federal minimum wage of US$ 1,160 per month, you’re actually in the red.
Comparing it to Brazil is interesting. There, the minimum is R$ 1,518, which would be R$ 6,032 if converted directly. It seems much higher, but the reality is different. The purchasing power varies a lot — one dollar in the US buys less than the equivalent in reais here. Also, states with higher minimum wages (like California or DC) have sky-high rent, so the advantage disappears.
The American system is quite decentralized. While the federal rate is stagnant, states are increasing wages to keep up with inflation. Anyone thinking about moving there needs to research not only the minimum wages in each region but also how much it costs to live there. Because the numbers don’t add up in almost any place with the federal floor, and even in states with higher wages, it’s still tight.