Truck drivers can be paid by the mile, by a percentage of load revenue, by the hour or load, and through additional pay, such as detention, stops, accessorials, and bonuses. For over-the-road (OTR) drivers, cents-per-mile (CPM) and percentage pay are two common pay structures.
The right pay structure for you depends on several factors, including how many miles you run, the freight you haul, market conditions and your carrier’s pay rules.
As the operations support manager here at Anderson Trucking Service (ATS), I work closely with contractor services and driver settlements. I’ve spent more than a decade looking at driver pay and settlement checks, so I’ve seen firsthand how different pay structures can affect a driver’s earnings.
In this article, I’ll explain how truck driver pay works, the different ways drivers can earn money, and what you should compare before choosing a pay program. You’ll also learn what to look for on your truck driver settlement.
Company drivers are employees of a trucking carrier. Depending on the carrier and the job, base pay may be calculated using cents per mile, percentage pay, hourly pay, load pay, or another structure. Drivers may also receive additional compensation for things like stops, detention, loading, unloading, tarping or bonuses.
Some company drivers also have the option to elect per diem pay. Per diem can affect how part of a driver’s pay is treated for tax purposes and how much appears in a paycheck.
The important thing is to look beyond one advertised number. A high CPM rate, for example, doesn’t necessarily mean a higher total paycheck if another job provides more paid miles or additional compensation.
Ask the carrier how the entire pay package works, how often you’ll be paid, and what will appear on your settlement statement.
Independent contractors may also be paid using percentage or CPM programs, depending on the carrier they contract with.
However, contractor revenue and company driver wages aren’t the same thing. Contractors operate a business and have expenses that company drivers generally don’t have, such as truck payments or leases, fuel, maintenance, and other operating costs.
Payment schedules can also vary by carrier. Contractors may receive settlements every few days, weekly, or on another schedule.
If you’re considering an independent contractor opportunity, ask how revenue is calculated, what expenses and deductions you’ll be responsible for and how often settlements are paid.
Related: How OTR driver pay works at ATS
There isn’t one universal way truck drivers get paid. The type of work you do and the carrier you work with can determine which forms of compensation are available. Common types of truck driver pay include:
Cents-per-mile (CPM) pay means a driver earns a set amount for each eligible paid mile. For example, if a driver earns $0.60 per mile and drives 400 paid miles, the mileage portion of that driver’s pay would be $240.
Actual CPM rates vary by carrier, job, freight type, driving experience, safety record, and other factors.
You should also ask what the carrier considers a paid mile. Depending on the pay program, loaded miles, empty miles, or other mileage may be treated differently.
CPM can make it relatively easy to estimate mileage pay:
CPM rate × paid miles = mileage pay
For example:
$0.60 × 2,500 paid miles = $1,500 in mileage pay
That amount doesn’t necessarily represent the driver’s entire paycheck. Detention, stop pay, bonuses and other compensation may be added separately.
With percentage pay, a driver receives a percentage of eligible revenue from a load. For example, if eligible revenue on a load is $6,000 and the driver receives 26 percent, the percentage-pay calculation would be:
$6,000 × 26% = $1,560
This example is for illustration only. Percentage rates and the revenue included in the calculation vary by carrier and pay program. That makes one question especially important:
Percentage of what?
Before accepting a percentage pay position, find out exactly what revenue is included. A carrier may base percentage pay on linehaul revenue, while fuel surcharges, accessorial charges, or other revenue may be handled differently.
Percentage pay can also fluctuate with freight rates. When eligible load revenue rises, percentage pay may rise with it. When freight rates fall, the amount earned from the same percentage can fall too.
Some truck driving jobs pay drivers by the hour rather than by the mile or load. Hourly pay is more common in jobs where a driver’s work involves significant time outside of simply driving from one location to another.
If you’re comparing an hourly driving job with a mileage- or percentage-based job, look at the expected hours, overtime rules, and other forms of compensation instead of comparing the hourly rate directly with a CPM rate.
With load pay, a driver receives a set amount for completing a load or trip. The amount may depend on the job, freight, route or carrier.
Because earnings are tied to completed loads, ask how many loads drivers typically complete during a normal week and what can affect that number.
Some company drivers may have the option to participate in a per diem program.
Per diem is designed to account for qualifying expenses drivers have while traveling away from home for work. How a carrier’s per diem program works can affect taxable wages and take home pay.
Because tax situations differ, make sure you understand your carrier’s program and consider talking with a qualified tax professional about your individual situation.
Drivers may earn stop pay when a load requires an additional stop between its origin and final destination. For example, imagine you load at a warehouse in Minnesota, and your final destination is in Texas. If you have to stop in Kansas to pick up additional freight or equipment, that may qualify for stop pay under your carrier’s pay program.
The amount and rules vary by carrier and customer.
Detention happens when a driver is delayed at a shipper, receiver, or another facility beyond an expected amount of time. You might experience detention because freight isn’t ready, a loading crew is unavailable, or unloading takes longer than expected.
Whether a driver receives detention pay depends on the carrier’s policies, the customer agreement, and the circumstances surrounding the delay. Some programs also require drivers to arrive on time and properly document the delay.
Ask your carrier when detention begins, how it’s calculated and what you need to do to qualify.
Accessorial pay covers additional work or services outside the basic movement of freight. Depending on the freight and carrier, examples may include:
If you’re comparing driving jobs, ask which accessorials are common in that fleet and how drivers are compensated for them.
You can also learn more about common accessorial charges in trucking.
Carriers may offer bonuses in addition to a driver’s regular pay. Examples can include:
Bonus programs vary widely. Ask your recruiter what you must do to earn the bonus, when it’s paid, and whether there are conditions you must continue to meet.
CPM and percentage pay calculate base earnings differently. CPM ties pay to eligible miles, while percentage pay ties earnings to eligible load revenue.
| Pay Structure | How It Works | Potential Advantage | Main Tradeoff |
|---|---|---|---|
| CPM | Pays a set amount for eligible miles. | Mileage pay is easier to estimate. | Pay doesn’t automatically increase when freight revenue increases. |
| Percentage | Pays a percentage of eligible load revenue. | Higher-paying freight can increase driver pay. | Earnings can fluctuate with freight rates. |
Here’s a simple example:
A driver earning $0.60 CPM for 2,500 paid miles would earn $1,500 in mileage pay.
A driver earning 26 percent of $6,000 in eligible load revenue would earn $1,560 in percentage pay.
Those examples don’t mean percentage pay is always better. Change the mileage, freight rate, percentage, or CPM rate and the result can change. That’s why you need to understand the complete pay program.
Neither CPM nor percentage pay is always the better choice.
CPM ties your base pay directly to eligible miles. That can make earnings easier to estimate when you know how many paid miles you typically run.
Percentage pay ties your earnings to eligible load revenue. That means the value of the freight matters along with the number of loads you haul.
Your best fit can depend on:
Instead of choosing based on CPM or percentage alone, ask the carrier to walk you through realistic examples using the freight you would actually haul.
Your base pay structure is only one part of your total earnings. Truck driver pay can also be affected by:
This is also why gross pay and take-home pay aren’t the same thing.
Gross pay is the amount earned before applicable taxes, deductions, and other expenses. What ultimately appears in your bank account can be different. Independent contractors need to pay especially close attention to this distinction because business expenses can significantly affect net income.
For a closer look at what appears on a settlement, read our guide to understanding truck driver settlement checks.
Don’t compare two trucking jobs using CPM alone. Before choosing a carrier or pay program, ask these questions:
You should receive the important details of your pay program in writing.
For more questions to ask before accepting a driving position, review the questions you should ask a truck driver recruiter.
Once you start driving for a carrier, review your settlement statements instead of looking only at the final deposit. A settlement should help you understand what you were paid for and why.
Depending on your pay program, that may include mileage or load revenue, accessorial pay, reimbursements, bonuses, and applicable deductions.
If something on a settlement doesn’t make sense, ask your carrier to explain it. You should be able to understand how your work turned into the amount you were paid.
At ATS, we work with both company drivers and independent contractors, and available pay structures depend on the driving opportunity.
Because I work directly with ATS contractor services and driver settlements, I see how important pay transparency is. Drivers should understand what generates their pay, what appears on their settlements, and who to contact when they have questions.
When you’re considering an ATS driving opportunity, talk with a driver consultant about the pay program for that specific position. Ask about paid miles, percentage calculations, accessorials, deductions and anything else that can affect your earnings.
And once you start driving, review your settlement statements regularly. A pay program is much easier to evaluate when you understand the numbers behind it.
Truck drivers can be paid by the mile, by a percentage of load revenue, by the hour or load, or through a combination of pay types. Drivers may also receive detention, stop, accessorial, and bonus pay. The exact structure depends on the carrier and driving job.
CPM stands for cents per mile. A driver paid by CPM earns a set amount for each eligible paid mile. For example, at $0.60 CPM, 500 paid miles would equal $300 in mileage pay before other compensation or applicable deductions.
Neither is always better. CPM ties base pay to eligible miles, while percentage pay ties earnings to eligible load revenue. Which works better can depend on mileage, freight rates, freight type, available loads, and the specific rules of the carrier’s pay program.
Some trucking pay programs compensate drivers for authorized empty miles, but policies vary by carrier and position. Ask whether empty miles are paid, what rate applies, and which miles qualify before accepting a driving job.
Percentage pay means a driver earns a set percentage of eligible revenue from a load. Because carriers may define eligible revenue differently, drivers should ask whether the percentage applies to linehaul revenue, accessorial charges, or other parts of the customer’s bill.
Accessorial pay compensates drivers for qualifying work or services beyond moving freight from origin to destination. Depending on the carrier and load, this can include tarping, detention, additional stops, loading, unloading, or special equipment.
Pay schedules vary by carrier and employment arrangement. Company drivers are commonly paid on a regular payroll schedule, while independent contractor settlement schedules can differ. Ask the carrier exactly when settlements are processed and what paperwork must be submitted on time.
The number on a recruiting ad doesn’t tell you everything about what you’ll earn as a truck driver. CPM, percentage pay, paid miles, freight rates, accessorials, available work, and deductions can all affect your final paycheck or settlement.
Before choosing a driving opportunity, get the pay details in writing and ask the carrier to show you how the program works using realistic examples. Once you start driving, review your settlements and ask questions when something isn’t clear.
ATS offers a variety of opportunities for company drivers and independent contractors. Visit our truck driver pay page to learn more about current ATS pay programs.
If you’re ready to discuss an opportunity, fill out an application to talk with an ATS driver consultant.