Minimum wage and average salaries in the US 🇺🇲: A guide for expats

The US is one of the world’s most advanced economies, with a generally high standard of living and many strong industries.

If you’re moving to the US for work, it’s important to understand minimum wage laws and typical salaries across different sectors. This guide explains the basics of minimum wage and average pay in the US, and what you can do if you think your wages are too low.

Minimum wage in the US 🇺🇲

The US has a federal minimum wage, and many individual states and local governments also have their own minimum wage. Employers must pay whichever rate is higher.

There has been a federal minimum wage since the 1938 Fair Labor Standards Act. The current rate is $7.25/hour, which has remained the same since July 2009. Current state-level minimum wages range from $5.15/hour in Georgia and Wyoming to $17.95/hour in the District of Columbia.

Minimum wage refers to direct pay and generally excludes benefits such as paid leave. According to OECD figures, the current federal rate is around 25% of the national average salary, which is the lowest among OECD countries (2023).

Salaries and wages for international workers in the US

Foreign-born workers make up 19.2% of the total US workforce (2024). According to the US Bureau of Labor Statistics, immigrant workers earn an average of 15.9% less than native workers.

However, this varies across ethnicities. White and Asian expats earn above national average rates, while black and Hispanic/Latino expats earn below the average. Wage levels also vary across age and education.

Sectors with a higher concentration of foreign-born workers in the US include agriculture, hospitality, construction, healthcare, and IT.

💡 Good sectors recruiting expat workers include:

• Engineering
• Finance
• Healthcare
• IT/software
• Research and development (R&D)

States with high-paying jobs for skilled international workers include New York, California, Texas, Washington, and Massachusetts.

You can find detailed information about the foreign-born workforce in the US (number of employees and median earnings by sector) on the US Census Bureau website.

Minimum wage in the US: Exclusions and variations

The following groups are either excluded from the federal minimum wage or receive different amounts.

👥 Type of worker	💰 Minimum wage entitlement
Workers with disabilities	Can be paid subminimum wages if productivity is impaired by physical or mental disability, subject to a certificate from the Secretary of Labor
Full-time students	85% of minimum wage if working in retail, service stores, agriculture, colleges, or universities
Workers aged under 20	$4.25/hour for the first 90 days of employment with any employer, and then full federal minimum wage entitlement after this.
Tipped employees	Excluded from minimum wage if they regularly receive more than $30/month in tips. Employers can pay $2.13/hour minimum but tips must bring the hourly rate up to full minimum wage amount (otherwise employer must make up the difference)
Student learners enrolled in vocational education	75% of federal minimum wage

Part-time workers, temporary workers, paid interns, and apprentices are all entitled to the minimum wage.

Each US state also has its own labor laws which may apply to different groups of workers. Where an employee is subject to both state and federal minimum wage laws, the higher of the two minimum wage amounts applies.

Exclusions and variations by sector in the US

In addition to the exclusions and variations listed above, workers in certain sectors are exempt from minimum wage provisions in the US. These include:

• Agricultural workers on small farms
• Employers of certain seasonal amusement and recreational establishments (e.g., fairgrounds)
• Certain executive, administrative, professional, and outside sales employees
• Casual babysitters
• Companions for the elderly
• Federal criminal investigators
• Fishing workers
• Homeworkers making wreaths
• Some newspaper employees and delivery staff
• Seamen on non-US vessels
• Switchboard operators

➡️ You can find full details on the US Department of Labor website.

Variations by state/local government in the US

States and many local governments in the US can set their own minimum wage rates. However, if these are lower than the federal minimum wage, then employees are usually entitled to the federal rate.

Minimum wages rates in states with high English-speaking expat populations include:

• California: $16.90
• Florida: $14.00
• New York: $17.00 in New York City and Nassau, Suffolk, and Westchester Counties ($16.00 elsewhere)

Here is a rough breakdown of state minimum wage laws:

States with no minimum wage laws	Alabama, Louisiana, Mississippi, South Carolina, Tennessee
States with minimum wages below the federal $7.25/hour basic rate	Georgia, Wyoming
States with $7.25/hour basic rate	Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, Wisconsin
States with minimum wages above the federal $7.25/hour basic rate	Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington D.C., West Virginia

⚠️ Bear in mind that many states regularly review and adjust their minimum wage rates.

➡️ For full details, including conditions and variations within each state, visit the US Department of Labor website.

Minimum wage calculator in the US

The US Department of Labor provides a minimum wage calculator where you can check your earnings against current pay regulations.

There are also a few other reliable calculators, such as the SmartAsset paycheck calculator where you can check your take-home pay after federal, state, and local taxes.

Average salary in the US

The average salary in the US depends on how you measure it. For example, the national average wage index (used by the SSA to calculate Social Security benefits) in 2024 was $69,847, which was a 4.84% increase from 2023. This is the mean average salary (total wages divided by total number of workers) including overtime, bonuses, commissions, and tips.

The US Bureau of Labor Statistics often calculates average wages slightly differently, using the median (middle figure). In 2025, the median weekly earnings for full-time workers in the US was $1,204, which works out as $62,608 annually. This includes regular salary, overtime pay, and regular/periodic bonuses, but not one-off or annual bonuses.

Average earnings vary by state and region. According to the most recent BLS data (2026), the highest average weekly wage is in Massachusetts ($1,454) while the lowest is in Mississippi ($1,025). Averages in expat-popular states include:

• California: $1,419
• Florida: $1,242
• New York: $1,340

➡️ You can find the latest figures for each state on the US Bureau of Labor Statistics website.

💡 Overall, salaries in the US are high compared with other countries. According to Numbeo data, the US has the 4th highest monthly net salary globally, after Switzerland, Luxembourg, and Denmark.

If you’re an expat working in the US and managing your finances in multiple currencies, you can use Wise to receive money easily, spend, and make international payments.

The Wise multi-currency account allows you to hold and convert funds in 40+ currencies. You can also send payments to 140+ countries and use the WIse Multi-Currency card for spending in 150+ countries.

Conversions use the mid-market exchange rate with no hidden fees, meaning you keep more of your salary in your new home.

Average salary in the US by sector

Salary also varies by industry in the US. Here are some of the latest weekly averages (2026):

Sector	Average weekly earnings	Average annual salary
Manufacturing	$1,471	$76,492
🛍️ Retail	$787	$40,924
💰 Finance	$1,833	$95,316
🏫 Private education and health	$1,173	$60,996
🏗️ Construction	$1,604	$83,408
🏨 Leisure and hospitality	$594	$30,888

What are the highest paying jobs in the US?

The highest-paying occupations in the US are primarily in healthcare. According to 2025 BLS data, nearly 20 specialisms pay at least $236,000 on average per year.

💡 These include psychiatrists, surgeons, dermatologists, prosthodontists, and anesthesiologists.

According to BLS statistics from 2025, other highest-paying occupations in the US include:

• Chief executives – $151,216 (annual salary)
• Architectural and engineering managers – $151,112
• Sales engineers – $145,444
• Computer and information systems managers – $135,148
• Software developers – $130,312

Salary checker in the US

There are numerous salary checking tools that you can use to find out the average salaries for your role and location. These include Hays and Payscale.

Gender pay gap in the US

Despite having good salary rates overall, the US still has a significant gender pay gap. According to OECD data from 2024, the wage gap was the 4th highest, after South Korea, Japan, and Estonia.

According to the latest BLS data from 2025, men’s median weekly full-time earnings are $1,326 and women’s are $1,089. This equates to an overall gender pay gap of 17.9%.

The 2025 World Economic Forum (WEF) Global Gender Gap Report ranks the US 42nd out of 148 countries in terms of overall gender equality, and 40th for wage equality for similar work. However, it ranks 1st for percentage of professional and technical workers.

What to do if your salary is too low in the US

If you believe you are paid below the minimum wage in the US, you should file a complaint with the US Department of Labor. You can contact your state department of labor if the dispute relates to state wage rates. Employees can also file private lawsuits against employers to recover unpaid wages.

Employers caught paying below legal minimums in the US can face penalties including repayment of wages underpaid as well as a civil money penalty of up to $1,000 for each violation. This increases to $10,000 for violation of child labor laws.

In 2025, the US Department of Labor recovered over $259 million in back wages for nearly 177,000 employees – an average of around $1,465 per worker.

Useful resources

• US Department of Labor – federal government department responsible for employment and wage policy (accessed 25 April 2026)
• US Bureau of Labor Statistics – produces data on the US labor force, including wage rates (accessed 25 April 2026)
• US Census Bureau – information and data on foreign-born workers in the US (accessed 25 April 2026)
• Hays – salary checker website for US roles (accessed 25 April 2026)