Trucking Pay Models Explained: Mileage, Hourly, Percentage

The way truck drivers are paid isn’t one-size-fits-all. It depends on the company, the type of freight, the driver’s classification, and often the region. But the three dominant models — mileage pay, hourly pay, and percentage-based pay — each offer a different structure for compensation. Knowing how they work, and what the tradeoffs are, can help drivers make better decisions about who they drive for and under what terms.

Mileage Pay

This is the most common pay model, especially among over-the-road (OTR) and regional drivers. It’s straightforward: you’re paid based on the number of miles you drive. But how those miles are calculated matters.

There are a few systems in play. “Practical miles” refers to routes based on actual driving paths, while “shortest route” miles are often based on ZIP code to ZIP code — which can undercount the real distance traveled. Some carriers also use hub miles, which record odometer readings and may result in slightly higher payouts.

The rate per mile varies widely depending on experience, haul type, and region. In 2025, rates generally range from $0.45 to $0.75 per mile, though specialized hauls like hazmat or refrigerated freight can push that higher.

Mileage pay works best for drivers who log consistent long-distance hauls without frequent downtime. The downside? Detention time, loading delays, and traffic often go unpaid unless specifically compensated by the carrier.

Hourly Pay

Hourly pay is less common in long-haul environments but standard for local routes, city delivery, and unionized fleets. It provides steady income regardless of traffic, delays, or route complexity.

Drivers are paid for every hour on the clock, including waiting time, pre-trip inspections, and local deliveries. Overtime may kick in after 40 hours, depending on the employment classification and labor laws in the state or under federal regulations.

Hourly pay offers predictability and fairness for time-intensive work, but it may cap earning potential compared to high-mileage pay structures — particularly for drivers who can legally and safely log high mile counts each week.

This model is often preferred by drivers who want to be home daily or those working in congested metro areas where stop-and-go traffic makes mileage-based pay inefficient.

Percentage Pay

Percentage-based pay links driver compensation to the revenue generated by the load. Typically used by owner-operators or leased-on drivers, it offers a cut of the freight bill rather than a fixed rate per mile.

For example, a driver may receive 25% to 30% of the linehaul revenue. If the freight bill is $2,000, the driver earns $500 to $600 for that haul, regardless of miles. This model rewards efficiency and can be especially lucrative on high-paying lanes or specialized freight.

However, this method introduces volatility. Revenue fluctuates based on freight rates, seasonality, and market demand. It also requires transparency from the carrier — drivers must know the actual linehaul amount to ensure fairness.

Percentage pay can outperform mileage pay in certain markets but demands more attention to route planning, freight selection, and overall market trends.

Choosing the Right Model

Each pay structure has strengths depending on a driver’s priorities. Mileage pay favors productivity and longer hauls. Hourly pay works well for local or time-heavy jobs. Percentage pay has the potential for high earnings but carries more financial risk and variability.

Drivers should also factor in accessorial pay policies, detention compensation, benefits, home time, and fuel surcharges when comparing jobs — not just the pay structure on paper.