Percentage Pay vs Mileage Pay in Trucking: Pros & Cons

How drivers are paid can have a significant impact on both their earnings and the way they view their job. Two of the most common pay structures in the trucking industry are mileage pay and percentage pay. Each system has its own strengths and trade-offs, and understanding how they work is essential for drivers evaluating opportunities or planning long-term career moves.

The choice between percentage and mileage pay often comes down to freight type, company model, and individual driver preferences—but knowing the differences can help drivers make smarter decisions about where and how they work.

What Is Mileage Pay?

Mileage pay is the most common pay structure in over-the-road (OTR) trucking. Drivers are paid a set amount per mile driven—typically based on either actual miles or “practical” miles (a standardized routing system that may not exactly reflect GPS distance).

Rates can vary by company, region, or experience, and may be influenced by bonuses, detention time, or additional responsibilities like unloading. The appeal of mileage pay lies in its consistency: drivers know they’re earning for every mile they log.

However, downtime—such as waiting at docks, traffic delays, or layovers—is usually unpaid unless additional pay structures are in place. This can make it harder to predict income in slower periods or when routes include more waiting than driving.

What Is Percentage Pay?

Percentage pay structures offer drivers a cut of the revenue generated from the freight they haul. Instead of earning by the mile, they earn based on the value of the load—often between 25% and 35% of the freight bill, though this varies widely by carrier and freight type.

This model is more common in flatbed, specialized, or owner-operator settings where freight rates can fluctuate significantly. The key advantage is that when freight pays more, drivers make more—even if the trip is shorter.

On the flip side, percentage pay is less predictable. During slower seasons or when freight rates dip, earnings can drop even if the workload stays the same. It also requires drivers to be more aware of the freight market and how rates are negotiated.

Pros and Cons of Mileage Pay

Mileage pay works best for drivers who prefer predictable schedules, consistent routes, and straightforward pay expectations. It’s easier to track, often supported by well-established dispatch systems, and doesn’t require much involvement in freight rates or contracts.

That said, it can be frustrating during long periods of non-driving time, especially when delays are out of the driver’s control. And in some cases, drivers may feel pressured to maximize miles instead of working more efficiently.

Pros and Cons of Percentage Pay

Percentage pay appeals to drivers who want to tie their income to the value they’re helping move. When freight rates are strong, earnings can be significantly higher than in mileage-based systems. Drivers also tend to feel more invested in efficient loading, route planning, and delivery execution.

However, the variability in load value, lane demand, and market conditions means paychecks may swing more than some drivers are comfortable with. It also demands a bit more understanding of freight rate dynamics, which can be a learning curve for newer drivers.

Final Thoughts

There’s no universally “better” pay model in trucking—only what works best for a given driver’s goals, experience, and freight preferences. Mileage pay offers steady, straightforward income tied to road time. Percentage pay ties earnings to freight value, offering more upside but also more variability.

For drivers evaluating job offers or shifting their career path, taking the time to understand how each system works—and how it aligns with their lifestyle—can make all the difference.