Have you ever stopped to think about what the minimum wage is in the USA? A lot of people who are planning to work or study there are surprised to learn how this system works. The difference is that in Brazil we have a single national amount, but in the United States each state can basically do what it wants.

The American federal minimum wage is US$ 7.25 per hour—a figure that’s been frozen since 2009. But here’s the important detail: states are free to set their own minimums, and many already adopt much higher values, between US$ 11 and US$ 16 per hour. Cities like New York, Los Angeles, and Seattle? Then the numbers get even higher.

If we calculate the minimum wage in the USA in monthly terms, considering the standard 40-hour workweek, the worker would earn about US$ 1,160 per month at the federal minimum. Now, if you’re in Washington D.C., which has the highest minimum wage in the country at US$ 17.50 per hour, then monthly income rises to around US$ 2,800. It’s a huge difference, right?

What draws my attention most is this regional disparity. You can earn anywhere from US$ 7.25 to US$ 17.50 depending on where you work. California, Washington, New York, D.C.—all these places acknowledge that the cost of living is completely different from the rest of the country and adjust their minimum wages accordingly.

Now, what is the minimum wage in the USA when converted to reais? If we use an approximate exchange rate of US$ 1 = R$ 5.20, that federal minimum of US$ 1,160 becomes about R$ 6,032 per month. It looks like a lot when you see it in reais, but here’s the reality: in the USA, this amount is not enough to cover basic expenses in most states. The average cost of living (without rent) is around US$ 1,185, and average rent comes out to about US$ 1,626. The math simply doesn’t add up.

Comparing with Brazil, the minimum wage there is R$ 1,518. At first glance, the American equivalent in reais seems much higher, but the story changes when you look at real purchasing power. One dollar in the USA buys fewer things than what you can get with the equivalent in reais in Brazil. In addition, structurally, Brazil has a single national minimum wage, while the USA works with this hybrid system of federal + state + municipal.

The American system is much more decentralized, which creates this crazy variation in wages depending on the region. States like Georgia and Wyoming have much lower values (theoretically US$ 5.15), but in practice, the federal minimum of US$ 7.25 ends up prevailing for most jobs.

Who earns these amounts? Mainly people who work in restaurants, fast food, cashiers, stockers, and cleaning helpers. There’s also an interesting point about tips—waiters can receive a lower base salary because tips supplement their income.

The conclusion is that living on the minimum wage alone in the USA is quite challenging. Even in states with higher minimum wages, the cost of living keeps pace. For anyone considering moving there, the advice is to research not only what the minimum wage in the specific state is, but also the cost of living in that region. It makes all the difference when it comes to deciding.