Minimum Wages in USA for 2025: A Guide for Indians

What are Minimum Wages in USA?

Minimum wages in the USA are determined at federal, state, and local levels. This ensures that workers earn at least a basic hourly rate. The laws also include specific provisions for different types of employees, such as tipped workers, disabled workers, and youth employees.

Key Facts:

• The federal minimum wage in USA is $7.25 per hour, applicable to covered nonexempt employees under the Fair Labor Standards Act (FLSA).
• States with higher wages ensure workers are paid more than the federal standard.
• Tipped employees and workers with disabilities may have different minimum wage requirements.

Know More: Working in USA During Summer Break

Minimum Wages in USA by State or Territory

The following table shows the hourly basic minimum wages across different U.S. states and territories:

[Considering 1 USD = ~84.75 INR as on December 4, 2024.]

Here are some of the states and territories in USA with highest minimum wage:

Note: American Samoa has special minimum wage rates. Other states and territories like Louisiana, Mississippi, South Carolina and Tennessee have no minimum wage.

Also Check: Jobs After Engineering in USA 

Minimum Wages in USA for Tipped Workers

In USA, employees engaged in occupations where you regularly receive over $30 a month in tips are called tipped workers. The tipped employees, like restaurant servers, waiters, and bartenders among others often earn less than the state minimum wage and depend on tips to supplement their income. However, some states ensure tipped workers are paid the full minimum wage before tips.

States Paying Full Minimum Wage to Tipped Workers:

• Alaska, California, Minnesota, Washington, Nevada, and others.

States Paying Higher Cash Wages Above Federal Standards:

• Florida, Arizona, Connecticut, Delaware, Colorado, among others.

Note: For tipped workers, the federal minimum cash wage is $2.13 (181 INR) per hour, but it varies by state.

Also Check: Average Salaries in USA

Special Minimum Wage Provisions in USA

Some groups of workers in USA are eligible for reduced wages under specific conditions. Following are some of the special minimum wage types:

Minimum Wage of Youth in USA

• Workers under the age of 20 may be paid $4.25 (360 INR) per hour for the first 90 consecutive calendar days of employment.
• In such cases, employers need to ensure this does not displace other workers.

Subminimum Wage for Workers with Disabilities

• Authorized by the FLSA, employers can pay workers with disabilities below the minimum wage.
• This requires a certificate from the Department of Labor.
• As of last July, about 38,000 workers were earning less than the minimum wage, with some earning as low as $0.25 (21.19 INR) per hour.

Students with financial need can check the popular scholarships to study in USA.

Benefits of Minimum Wages in USA

The minimum wages in USA ensure a basic pay for all registered workers. Some of the key benefits of stipulated minimum salary in USA are as follows:

• Improves Standard of Living: Guarantees a basic income for essentials.
• Reduces Poverty: Ensures low-wage workers can meet basic expenses.
• Promotes Income Equality: Prevents discrimination based on gender or ethnicity.
• Boosts Economic Growth: Increased income leads to higher consumer spending.

These benefits help part-time student workers maintain a stable lifestyle while pursuing their education.

Jobs in USA with Minimum Wages

In USA, jobs paying minimum wages are often considered entry-level, or starter jobs. These jobs provide valuable work experience while helping students cover their living expenses. These jobs are ideal for students looking to work while studying in USA by working off-campus.

Examples of Minimum Wage Jobs in USA:

• Food service: Waiters, cooks, and food preparation workers.
• Retail: Sales clerks and cashiers.
• Hospitality: Housekeepers and bartenders.
• Childcare: Babysitters and daycare assistants.

Also Check: Post Study Work Visa in USA

Before enrolling to a university, Indian students planning to work while studying must check the state-wise minimum wage. This way, students can make informed decisions while working part-time during their studies abroad.