Federal Minimum Wage Remains at $7.25 as State Rates Vary Significantly
The federal minimum wage in the United States has been set at $7.25 per hour since 2009. This rate translates to approximately $1,257 per month. When compared to an American single-person's basic monthly cost of living, estimated at $2,522, the federal minimum wage covers only 49.8% of these expenses. This benchmark highlights a significant disparity, especially when contrasted with minimum wage coverage in other countries. For instance, Mexico's minimum wage, despite being 42% of the U.S. federal minimum in dollar terms, covers a similar percentage of a single person's basic costs (49.6%) due to significantly lower living expenses. The federal standard is notably lower than many state-level minimum wages, such as Maine's $15.10 per hour in 2026, and is a mere 27.6% of the average American net salary, a ratio far below that seen in several Latin American nations.
