MINIMUM AND AVERAGE SALARY IN THE UNITED STATES
The United States is a large, diverse nation with many regions that vary widely in socioeconomic and cultural terms. In general, the local population has a high standard of living, and a steady paycheck for the average American is considered one of the main indicators of well-being and confidence in the future. The country has complex tax and labor laws and this should definitely be taken into account when planning to immigrate to the United States for a long period of time.
The world's most powerful economy offers migrant workers from all over the world a high income and great career prospects. Mostly only experienced skilled specialists and holders of professions in short supply for the local labor market are invited to work in the USA. An impressive number of different types of U.S. work visas make it possible to attract workers from abroad in a very effective way. Next, learn about the level of salaries in the U.S. in 2023.
Minimum salary in the United States
U.S. law provides for a national minimum hourly wage at the federal and local level. Under the Minimum Wage Act, employers are required to be guided by the rate that is currently higher. According to official information from the local Department of Labor, the U.S. federal minimum wage in 2023 is $7.25 per hour. The rate has not increased since 2009.
The Fair Labor Standards Act singles out certain categories of workers who are not guaranteed a minimum wage of $7.25 an hour. For example, this includes students at U.S. universities and other educational institutions, part-time workers in service, retail and agricultural jobs while studying, and workers with mental or physical disabilities that affect productivity. In addition, the U.S. federal minimum hourly wage is not available for the following professionals:
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Nannies (in some cases).
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Caregivers caring for the elderly.
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Federal investigators.
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Fisheries professionals.
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Workers who make wreaths at home.
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Couriers employed by newspaper delivery services and employees of newspapers with limited circulation.
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Seafarers employed on foreign ships.
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Telephone operators.
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Agricultural workers employed on small farms.
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Employees of seasonal entertainment establishments.
Young professionals under the age of 20 may be paid $4.25 per hour for the first 90 days of employment. After a 3-month period or turning 20 (which comes sooner), an employee should be paid at least $5.85 per hour. According to research by influential U.S. publications, some 20.6 million wage earners in the U.S. today have incomes near the minimum wage. The restaurant service industry leads in the lowest rates.
Twenty-nine U.S. states plus the District of Columbia, Guam and the Virgin Islands have higher minimum hourly wages than the federal level. Sixteen states plus Puerto Rico have a similar rate of $7.25. The Commonwealth of the Northern Mariana Islands has special rates. Five other regions have no mandatory minimum wage fixing legislation.
The highest U.S. minimum wage is in the District of Columbia ($16.50), Washington ($15.74), California ($15.50), Massachusetts ($15) and Oregon ($14.75). In addition, 12 states adjust their rates annually for the Consumer Price Index.
No. | State | Minimum wage (per hour) |
1 | District of Columbia | 16.50 |
2 | Washington DC | 15.74 |
3 | California | 15.50 |
4 | Massachusetts | 15 |
5 | Oregon | 14.75 |
6 | New York | 14.20 |
7 | New Jersey | 14.13 |
8 | Connecticut | 14 |
9 | Arizona | 13.85 |
10 | Maine | 13.80 |
For more details on the U.S. minimum wage, visit the U.S. Department of Labor's official website – dol.gov.
Average salary in the United States
According to the U.S. Bureau of Labor Statistics, the official average U.S. wage in 2023 is $1,085 per week. That means about 118.8 million full-time workers and employees in America earn an average of $4,700 a month before taxes. And women's incomes are 17.1 percent lower than men's. In terms of ethnic groups, Hispanics have the lowest wages at $837 a week. African Americans earn $896, whites $1,111 and Asians $1,496.
Important. Compared to 2022, the average U.S. wage has increased by $75 a week or 7.4%, with an inflation rate of 7.1%.
By age, the highest incomes were recorded for male Americans 45 to 54 years old – $1,355 per week. Men and women ages 16 to 24 earn just $744 and $694, respectively. Among occupational groups in the U.S., managers and executives lead in terms of weekly average salaries at $1,729 (men) and $1,316 (women). Workers in the service industry lag noticeably behind in earnings at $782 (men) and $652 (women).
The U.S. unemployment rate in 2023 will not exceed 3-4%. Tens of thousands of new jobs are created each month in the local labor market. The construction industry alone generates 40,000 to 60,000 jobs each month, the best rate in 10 years. The average wage in the U.S. depends on many factors, including gender, education, skill level, experience, occupational demand, and the particular state.
For example, a seasonal job in Alaska in the fishing industry, given the harsh conditions and irregular hours, will bring at least $4,000 to $5,000 per month. In the case of employment in New York, you can count on a salary of $5,500 or more. In fact, in any major American city, hired labor is paid quite decently. Traditionally low salaries are typical for southern states – Mississippi, Arkansas, and high for northeastern states – Maryland, New Jersey.
Detailed information about the average wage in the United States can be found on the official website of the U.S. Bureau of Labor Statistics – bls.gov.
ECONOMIC SECTOR | WAGES (DOLLARS PER WEEK) |
Utilities | 2,056.16 |
Information Technology | 1,749.02 |
Mining and quarrying | 1,684.96 |
Financial activities | 1,590.85 |
Professional activities and business services | 1,455.22 |
Wholesale trade | 1,403.01 |
Construction | 1,394.64 |
Manufacture | 1,274.29 |
Transport and warehousing | 1,093.40 |
Education and health services | 1,089.84 |
Retail trade | 716.68 |
Recreation and hospitality | 531.17 |
Other services | 953.17 |
Note that the above salaries in the U.S. are before taxes (gross) and other mandatory payments. For example, the country has a progressive income tax rate of 10 to 37 percent. That is, the more you earn, the higher the rate. At the same time, low-income families receive various benefits and tax credits. Adding up all taxes (federal and local), the average American worker contributes about 31.7% of his or her annual salary to the government.
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