Understand Truck Driver Pay for More Informed Decision-Making and Negotiating

Many factors contribute to a fleet's ability to attract and retain drivers, and pay tops the list. While load availability, home time and quality equipment are key considerations, drivers frequently receive employment offers promising these quality-of-life benefits. Consequently, many naturally look to pay as the differentiating factor. 

The Bureau of Transportation Statistics estimates 2.2 million heavy truck and tractor-trailer drivers currently work in the United States. Their compensation forms a substantial portion of logistics industry costs. There is also considerable competition for their services among motor carriers. Setting driver pay at a level that attracts qualified candidates while helping fleets maintain profitability is the balancing act hiring managers must master. 

For those working in over-the-road freight, especially in human resources or business planning roles, understanding truck driver compensation systems is crucial. This knowledge is key to effective decision-making about driver pay and, ultimately, business success. 

Similarly, drivers looking to increase their earnings will benefit from understanding pay systems, scales and incentives. This knowledge will enhance their ability to negotiate aspects of their employment such as routes, hours and bonuses.

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A Cargo Transporters driver flashes a peace sign. (John Sommers II/Transport Topics)

In the United States, trucks move about 70% of all freight. The freight industry employs more than 2 million heavy truck and tractor-trailer drivers. Many of these drivers work for large fleets, which are either for-hire carriers (trucking companies that offer services to shippers) or private carriers (trucking divisions within larger companies, such as retail or manufacturing brands like Walmart). Additionally, many companies use third-party logistics providers, which often do not own their own fleet of trucks but coordinate logistics and transportation services. 

The employed truck driver population is supplemented by many owner-operators. The BTS reports that, according to the Federal Motor Carrier Safety Administration, there were 922,854 independent owner-operators as of November 2023. These drivers are effectively business owners, sometimes used by major fleets as a way of adding capacity when necessary. Since they are not fleet employees, they are not included further in this article. 

Driver retention is a major concern within the industry. Many large fleets are dealing with turnover rates as high as 89%, while in smaller fleets the problem is only slightly less severe. As it costs between $2,000 and $15,000 to recruit and onboard a new driver, this turnover is a significant drain on profitability. 

The opportunity to earn more money is a major, though not the only, factor in why drivers change jobs. Long hours behind the wheel, extended periods away from home, health challenges and vehicle conditions are other reasons drivers may seek employment elsewhere. Additionally, the rising average age of the truck driving workforce means retirements account for a proportion of job departures. 

To counter this turnover, fleet managers are taking a two-pronged approach. This involves: 

1. Trying to encourage drivers to stay, as evidence shows more experienced drivers are involved in fewer accidents, which reduces insurance premiums. 

2. Recruiting new drivers with higher pay and other incentives.

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(Volvo Trucks North America)

The trucking industry uses reward models. They are: 

1. Pay Per Mile 

2. Hourly Pay 

3. Pay by Load 

4. Salaried 

Each model motivates and rewards different behaviors and is used by different sectors within the freight industry. Per-mile and by-load models tend to emphasize getting the job done with the fewest delays possible, with associated potential downsides, while others focus more on successful delivery. 

The type of driving — whether long distance, regional or local delivery — and the pay model used can have a substantial impact on driver earnings. Companies looking to make themselves more attractive to drivers might consider exploring hourly pay, pay-by-load or salary options.

Pay Per Mile 

This approach, the most widely used method of paying truck drivers, provides a clear motivator to complete jobs efficiently so drivers can start the next run. As the name suggests, the driver receives a fixed rate for each mile driven. This approach is especially common in long-distance, over-the-road driving. Some key considerations:  

• Offers flexibility in route planning and arrival time 

• Motivates the driver to complete the route efficiently 

• The driver doesn’t get paid when the truck isn’t moving. Road delays, paperwork, loading/unloading and rest time are all unpaid 

The proportion of unpaid time on every journey means this model is more attractive for long journeys. 

Hourly Pay 

Mostly used for local distribution and short-haul journeys, this model can provide stability for drivers with consistent schedules but may not fully account for time spent waiting or delays.

Pay by Load 

This model incentivizes drivers to complete journeys as efficiently as possible. It is used for less-than-truckload deliveries where the emphasis is on consolidating smaller, partial loads and breaking them down again for final delivery. 

From the perspective of LTL drivers, a key downside is that the effective pay per hour and maximum weekly earnings will suffer when delays arise through no fault of their own, such as traffic congestion or severe weather. 

Salaried Pay

Putting drivers on a salary, where they receive a fixed amount each week or month regardless of the number of miles driven or time spent on the road, is somewhat uncommon in over-the-road freight. In a small number of cases, drivers who operate over fixed routes within a defined region or who drive specialized vehicles may be put on salary. 

An advantage of salaried pay is that it removes the earnings variables inherent in the other models. At the same time, it also removes any financial motivation to complete each delivery as quickly as possible.

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(Comstock/Getty Images)

Hours worked and/or miles driven are not the only factors affecting the income drivers can achieve and the standard of living they can enjoy. Other notable factors are: 

• Experience 

• Trailer type 

• Local factors 

• Team driving 

• Additional forms of compensation 

Experience 

Motor carriers tend to raise pay as drivers gain experience. This helps counter driver turnover, which is a problem for many carriers. It also rewards safe driving habits, as drivers with poor records are more likely to have their employment terminated. 

Freight Type 

Pay varies between trailer types. In general, tanker and hazmat truck drivers are paid slightly more than other drivers. This stems from the nature of the loads, which require specialized licenses, not to mention specialized skill and experience, to handle safely and minimize risks. This is especially true with trailers used for oversize loads. These trailer types also pose specialized challenges with loading and unloading, such as the need to connect pipes.  

Local Factors 

Truck driver pay is strongly influenced by factors like the local cost of living and its impact on the supply and demand for drivers, and so varies by region across the United States. According to Bureau of Labor Statistics data on Employment and Wages of Heavy and Tractor-Trailer Truck Drivers, Western and Northern states pay higher hourly rates than those in the South and Southeast. 

Team Driving 

Companies looking to boost delivery volume sometimes choose to supplement their roster with team drivers. This is where two drivers travel together, taking turns driving. The benefit for employers is that loads can cover long distances in less time. Team drivers earn a substantial premium over solo drivers, but only when behind the wheel. Maximizing earnings from team driving requires extended periods away from home.

Additional Forms of Compensation 

Another factor for many drivers is the policies and benefits of their employing companies. Health care is common, but details can vary widely by employer. Retirement plans, paid vacation and bonuses are other forms of payment employers may choose to offer.

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(photovs/Getty Images)

The American Transportation Research Institute's Operational Cost of Trucking: 2023 Update report observes that pay is slightly higher in larger fleets. Drivers in fleets larger than 1,000 vehicles were earning an average of $0.77 per mile, while in fleets of less than 26 trucks the rate was $0.64. 

Across a range of larger truck driver employers, ZipRecruiter reports hourly equivalent earnings range from $15 to $36. 

Truck Driver Pay Based on Truck Type and Distance 

According to the Conversion Interactive Agency/PDA 2023 Driver Recruiting and Retention Annual Report, dry van drivers are the highest paid among company drivers. The CIA/PDA study puts their average weekly earnings at $1,815. Company drivers of refrigerated trailers and flatbeds earn slightly less at $1,699 and $1,641 respectively. 

In per-mile terms, the midpoint is in the $0.50-0.60 per mile range. 

Company drivers specializing in particular types of trucks can earn more money. Rates vary by location and employer, but ZipRecruiter reports that fuel tanker drivers can average $1,145 per week, while oversize load drivers typically make $1,856 per week. (Note that pay for driving oversize loads varies widely depending on experience and familiarity with regulations on these loads). Specialty vehicle haulers (car transporters) are also highly paid, due to the added responsibilities placed on them by handling high-value loads. The average pay for these drivers is $1,979 per week. 

Pay Differences Between Full Truckload and LTL 

Freight shipments are often organized in terms of full truckload and LTL. This has implications for both their customers and the drivers hauling those loads. 

Full truckload is where a freight customer contracts for the entire hauling capacity of a tractor-trailer combination. In this scenario, a shipment is loaded at point A and the driver takes it to point B, where it's unloaded. Much of over-the-road trucking falls into this category. 

In LTL trucking, a trailer is loaded with freight from multiple customers. It may then be driven to multiple delivery locations (referred to as "P&D" for "pickup and delivery"), or to a single location. The latter is referred to as "linehaul." 

LTL means more loading and unloading time for the driver. However, LTL drivers also get home most, if not every, day. 

The ATRI 2023 Update report sees that LTL drivers in fleets larger than 1,000 trucks were earning an average of $0.85 per mile in 2022. This is a significant premium over dry van drivers. 

Glassdoor puts the pay range for LTL drivers at $59,000 - $93,000 per year, with a mean of $74,000. This equates to a mean of $1,480 per week.

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(Charles Rex Arbogast/Associated Press)

In certain sectors of the road freight industry, drivers can supplement their base pay in many ways. These are particularly common where employers are struggling with driver retention and in parts of the country with an especially high demand for drivers. These additional sources of income are: 

• Sign-on bonuses 

• Safety bonuses 

• Performance incentives 

• Referral bonuses 

• Retention bonuses 

Sign-on Bonuses 

This is money, usually a lump sum, paid to a driver when they start with a new employer. Typically, the driver is expected to return the bonus if they leave before completing a certain length of service. Sign-on bonuses are often paid when a company is motivated to attract new drivers. 

Safety Bonuses 

Motor carriers are very anxious to avoid accidents. First and foremost, there are the potential human costs. From a business perspective, even small accidents can delay deliveries and inconvenience customers. Additionally, there is the cost of repairs, the possible impact on insurance premiums and the risk of reputational damage. Accordingly, companies often use this kind of bonus to reward safe behaviors such as accident-free miles, observing traffic laws and avoiding distractions. 

Performance Incentives 

Many companies use performance incentives to motivate desirable behaviors among their drivers. The primary performance metric is arrival at the destination within a certain time window. Other examples include cargo arriving undamaged and not collecting complaints about discourtesy. Attendance records and paperwork accuracy can also be included. 

Referral Bonuses 

Like sign-on bonuses, these are intended to help address driver shortages. The hope is that as drivers meet and talk, an employee will encourage other suitably qualified drivers to apply for open positions. If subsequently hired, the referring driver receives a bonus. 

Retention bonuses 

The idea behind retention bonuses is to give drivers a reason to stay with their current employer, and thus reduce turnover. Typically, this is paid out at a service milestone such as the anniversary of joining the company. According to “Recruiting and Retaining Drivers Remains a Challenge” published by Transport Topics in December 2023, average retention bonuses in mid-2023 were $1,272. 

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(Gateway Community & Technical College)

Despite the need for drivers, those new to driving and with limited experience are not in a strong position to negotiate a first offer upwards. The exception to this is if they can show they already have a better offer from another company. However, for experienced drivers, the key to getting a better offer is to know the value they bring. 

Experience and a safe driving record are two factors potential employers value highly, as they lower accident risk and insurance premiums. For a driver wishing to negotiate an improved job offer, evidence of a history of safe driving will strengthen their position. 

Recent Developments in Truck Driver Income Patterns 

The freight industry in the United States is known for its cyclical patterns. After strong earnings growth during the pandemic years, 2023-24 saw more of a plateau. One important aspect identified by The National Transportation Institute is a decline in productivity. For those drivers paid by the mile, this means that despite rising rates, earnings are flat or even declining slightly. 

Looking ahead, recruitment pressures are easing as driver supply rises and demand falls. NTI notes a decline in both sign-on and referral bonuses, providing evidence of this trend. However, taking a longer-term view, American Trucking Associations is forecasting strong growth in trucking over the next decade. 

Information for Decision-Making 

Whether managing transport operations, working in driver recruitment or sitting in the cab of a tractor-trailer, a good understanding of pay systems is key to effective decision-making. This article has described how drivers are rewarded, where pay is highest, and what skills or attributes are valued most highly. It also looked at industry trends, so readers can improve their understanding of where the industry is headed. 

The struggle managers in road freight businesses face is balancing the opposing forces of driver shortages with pressure for profitability. Driver turnover is straining recruitment and training functions and increasing cost pressures. To address this, driver pay is rising incrementally, and various one-off payments are helping with both retention and recruitment. 

For drivers looking to maximize earnings, it's vital to understand where pay is highest. Currently, this is in the LTL sector, working for one of the large fleets. Experience, a safe driving record and willingness to be away from home are other factors that help boost pay. 

Whether you're managing drivers, hiring drivers or driving, one thing doesn't change: navigating U.S. highways and byways is challenging work. It can also be rewarding.