US Minimum Wage by State: What International Students Can Expect to Earn Part-Time

For international students holding an F-1 visa, part-time work on campus is limited to 20 hours per week during academic semesters, and the wage you earn depends entirely on where your school is located. As of January 2025, the federally mandated minimum wage under the Fair Labor Standards Act (FLSA) remains $7.25 per hour, a rate that has not changed since July 2009 (U.S. Department of Labor, 2024, FLSA Fact Sheet #14). However, 30 states and the District of Columbia have enacted their own minimum wages above the federal floor, ranging from $9.30 in Michigan to $16.50 in Washington, D.C. (U.S. Department of Labor, 2025, State Minimum Wage Laws). For an international student working the maximum 20-hour week for 40 weeks of the academic year, the difference between earning $7.25 and $16.50 per hour translates to a gap of $7,400 in annual take-home pay — a significant factor in budgeting for tuition and living costs.

State-by-State Breakdown of Minimum Wage Rates

The federal minimum wage of $7.25 per hour applies in 20 states, mostly concentrated in the South and parts of the Midwest. States like Alabama, Louisiana, Mississippi, and South Carolina have no state minimum wage law, so the federal rate is the default. In contrast, high-cost states have set wages well above the federal floor. For example, California mandates $16.00 per hour as of January 2025, while New York sets $15.00 per hour for most employees, with higher rates in New York City ($16.00) and for fast-food workers ($16.50) (California Department of Industrial Relations, 2024, Minimum Wage Order; New York State Department of Labor, 2025, Minimum Wage Schedule).

Notable Regional Variations

• West Coast: Washington state leads at $16.28 per hour, followed by Oregon at $14.70. These rates are indexed to inflation and adjust annually.
• Northeast: Massachusetts ($15.00), Connecticut ($15.69), and Vermont ($13.67) reflect the region’s higher cost of living.
• Midwest: Illinois ($14.00) and Michigan ($9.30) show wide variation even within the same region.
• South: Only Florida ($12.00) and Virginia ($12.41) have rates significantly above the federal floor, while Texas, Georgia, and North Carolina remain at $7.25.

How On-Campus Employment Rules Affect Your Wage Calculation

International students on F-1 visas are generally restricted to on-campus employment during the first academic year. This includes working for the university itself, such as in libraries, dining halls, or administrative offices, or for an on-campus commercial firm that provides services directly to students (e.g., the campus bookstore or food court). The wage you earn is still subject to the state or federal minimum, whichever is higher. For example, a student at the University of Washington in Seattle would earn at least $16.28 per hour, while a student at the University of Alabama in Tuscaloosa would earn the federal minimum of $7.25 per hour.

Off-Campus Work and Wage Implications

After the first academic year, students may apply for off-campus work authorization through Curricular Practical Training (CPT) or Optional Practical Training (OPT). CPT must be directly related to your major and is often unpaid or paid depending on the employer. OPT allows up to 12 months of paid work after graduation, and wages during OPT are subject to the same state and federal minimums. For STEM graduates, a 24-month extension is available, during which the wage floor remains unchanged.

Cost of Living vs. Minimum Wage: A Practical Comparison

A higher minimum wage does not always mean higher disposable income. The cost of living varies dramatically across states. According to the Missouri Economic Research and Information Center (MERIC, 2024, Cost of Living Data Series), the cost of living index (national average = 100) ranges from 84.8 in Mississippi to 192.4 in Hawaii. A student earning $16.00 per hour in California faces a cost of living index of 138.5, while a student earning $7.25 per hour in Mississippi faces an index of 84.8. Adjusting for purchasing power, the California student’s effective hourly wage is $16.00 ÷ 1.385 = $11.55, while the Mississippi student’s effective wage is $7.25 ÷ 0.848 = $8.55. The gap narrows from $8.75 to $3.00 per hour after accounting for living costs.

Housing and Food Costs

On-campus housing and meal plans can significantly reduce living expenses. Many universities subsidize student housing, which may be cheaper than off-market rentals. For example, a student at the University of Texas at Austin (state minimum $7.25) might pay $1,200 per month for an off-campus apartment, while a student at the University of Illinois Urbana-Champaign (state minimum $14.00) might pay $900 per month for comparable housing. Always check your university’s housing cost estimates before assuming a higher wage is better.

Tipped Minimum Wage and Student Service Jobs

Some on-campus positions, such as waitstaff at university-run restaurants or banquet servers, may fall under tipped minimum wage rules. The federal tipped minimum wage is $2.13 per hour, but employers must ensure that tips plus the base wage equal at least the standard minimum wage of $7.25 per hour. However, many states have abolished the tipped minimum wage entirely. As of 2025, seven states — including California, Oregon, Washington, and Minnesota — require employers to pay tipped workers the full state minimum wage before tips (U.S. Department of Labor, 2025, Tipped Minimum Wage by State). International students in these states can expect a more predictable base income.

Tax Implications for Tip Income

Tips are considered taxable income by the IRS. Students must report cash tips of $20 or more per month to their employer, who then withholds Social Security and Medicare taxes. For international students, the U.S. has tax treaties with many countries that may exempt a portion of wage income, but tips are generally not covered by these treaties. Always check your specific treaty with the IRS (Publication 901, 2024, U.S. Tax Treaties).

State Preemption Laws and Local Minimum Wages

A growing trend is local minimum wage ordinances that exceed state rates. For example, in Colorado, the state minimum is $14.42, but the city of Denver mandates $18.29 per hour for all workers, including student employees (Denver Office of Labor Standards, 2025, Minimum Wage Ordinance). Similarly, in Illinois, Chicago’s minimum wage is $15.80, compared to the state’s $14.00. International students working for universities located in these cities are entitled to the higher local rate. However, some states, like Florida and Ohio, have preemption laws that prohibit cities from setting their own minimum wages. Always verify both state and local laws at your specific campus location. For cross-border tuition payments or setting up a U.S. bank account to receive wages, some international families use channels like Airwallex global account to manage funds across currencies efficiently.

FAQ

Q1: Can I work more than 20 hours per week during school breaks?

Yes. During official school breaks, such as winter break (typically 3-4 weeks) and summer break (10-12 weeks), F-1 students may work full-time (up to 40 hours per week) in on-campus jobs. This can significantly boost earnings. For example, a student earning $15.00 per hour working 40 hours per week for 12 weeks would earn $7,200 during summer break alone, compared to $3,600 at 20 hours per week.

Q2: Do I need a Social Security Number (SSN) to work on campus?

Yes. To receive wages, you must obtain a Social Security Number (SSN). You can apply for an SSN by visiting the Social Security Administration (SSA) office with your passport, I-20 form, and a letter from your employer confirming the job offer. Processing typically takes 2-4 weeks. Without an SSN, your employer cannot process payroll, and you cannot legally work.

Q3: What happens if my state’s minimum wage changes during my employment?

Most state minimum wage changes take effect on January 1 of each year, though some states (e.g., New York, California) adjust on different dates. Your employer must pay you the new rate from the effective date forward, even if you were hired at a lower rate. For example, if your state’s minimum wage increases from $14.00 to $15.00 on January 1, your hourly rate must increase to $15.00 on that date. No retroactive pay is required for hours worked before the change.

References

• U.S. Department of Labor. 2024. Fair Labor Standards Act Fact Sheet #14: Coverage Under the FLSA.
• U.S. Department of Labor. 2025. State Minimum Wage Laws Database.
• Missouri Economic Research and Information Center (MERIC). 2024. Cost of Living Data Series (Q3 2024).
• Internal Revenue Service. 2024. Publication 901: U.S. Tax Treaties.
• Denver Office of Labor Standards. 2025. Minimum Wage Ordinance Summary.