USA vs Brazil: what will the minimum wage be in 2025?

Many people want to know: what is the actual minimum wage in the United States? The truth is that the American system works completely differently from Brazil. While here there is a single national floor (R$ 1,518 in 2025), each state decides its own value. The federal minimum is US$ 7.25/hour — yes, since 2009, frozen for 16 years.

But don’t think that everyone earns that. California has US$ 16.50, Washington US$ 16.66, and Washington D.C. leads with US$ 17.50/hour. At the other end, Georgia and Wyoming are at US$ 5.15/hour — but the federal minimum still prevails. Florida? The state closely follows with regional values between US$ 13 and US$ 14/hour, depending on the city.

The math doesn’t add up

Here’s the problem: with US$ 7.25/hour working 40 hours a week, you earn about US$ 1,160 monthly. It seems okay until you see the expenses: the cost of living is around US$ 1,185/month (without rent) and the average rent is US$ 1,626. Literally, the salary doesn’t even cover rent + basic food.

Converting to real also doesn’t help much. With the dollar around R$ 5.20, this US$ 1,160 becomes R$ 6,032. It seems much more than our minimum of R$ 1,518, right? Wrong. The cost of living in the US is proportionally much higher — a simple apartment in any metropolis easily costs 3,000 reais.

Why do states raise the minimum?

Expensive places need to. New York increased to US$ 15.50 in the metropolitan area. Washington D.C., with its government buildings and high purchasing power, reached US$ 17.50. California, the country’s largest economy, offers US$ 16.50. These states know that no one survives on US$ 7.25/hour — it simply doesn’t add up.

Even in Florida, where the cost is lower than in Los Angeles or NYC, the main cities are already pushing for increases. The reality is that the federal minimum has not kept up with inflation since George W. Bush.

What is the real calculation?

Simple: hourly wage × 40 hours × 4 weeks.

• Federal minimum: 7.25 × 40 × 4 = US$ 1,160/month (R$ 6,032)
• Washington D.C.: 17.50 × 40 × 4 = US$ 2,800/month (R$ 14,560)
• Florida (average): 13.50 × 40 × 4 = US$ 2,160/month (R$ 11,232)

Who earns this? Cashiers, checkout operators, stockers, cleaning staff — basically entry-level jobs. If you receive tips (waiter, bartender), the employer can pay less because they expect the tip to make up the difference.

Brazil remains different

Meanwhile, Brazil maintains a single national model: R$ 1,518 in 2025. It seems worse numerically, but direct comparison is misleading. Rent in Rio or São Paulo doesn’t cost R$ 5,000. Expenses are proportional. Purchasing power matters more than absolute numbers.

The American dream of a minimum wage? In most states, it really doesn’t work. Even in places where the minimum has increased, it’s still too tight to live alone in a big city.