I’ve always been intrigued by how the minimum wage in the United States works so differently from Brazil. I mean, while we have a single national value, in the U.S. the system is much more decentralized.

The U.S. federal minimum wage has been $7.25 per hour since 2009 — yes, frozen for over a decade. But here’s the interesting part: states, cities, and even counties have the freedom to set their own minimums. That means depending on where you work, you could earn anywhere from $7.25 to $17.50 per hour. That’s a huge disparity.

I was looking at the numbers, and it’s clear why expensive cities like New York, Los Angeles, and Washington D.C. have much higher minimum wages. In D.C., for example, the minimum is $17.50 — almost triple the federal minimum. Meanwhile, states like Georgia and Wyoming are close to the national floor.

What about the minimum wage in the United States in monthly terms? If we consider the standard 40-hour workweek with the federal minimum, it comes to around $1,160 per month. But that’s very theoretical. In practice, those working at the federal minimum face real difficulties — the average rent there is about $1,626, so the numbers just don’t add up.

What impresses me is that even with these state increases, the minimum wage in the U.S. still isn’t enough to cover basic living costs in most places. California has $16.50/hour, but rent there is outrageous. Washington has $16.66/hour, and people still face hardships.

Converting to reais at an approximate rate of R$5.20, the federal minimum is around R$6,032 per month. It seems quite high compared to the Brazilian minimum wage, but the purchasing power isn’t proportional — one dollar in the U.S. buys less than it appears at first glance.

The whole structure is very different from the Brazilian model. In the U.S., it’s a hybrid system where the federal government sets the floor, but states have been approving significant increases to keep up with inflation and local costs. Here, we have a single national value, which is simpler but less flexible.

For those thinking about moving to the U.S., the advice is to research not only the minimum wage in the specific state but also understand the cost of living in that region. Because earning more in dollars doesn’t necessarily mean living better if rent and expenses consume everything.