Mileage VS Percentage Pay
 

Hubby is contemplating joining a company where they offer both mileage and percentage pay. Dont know anything about how percentage pay works?? Looking for some feedback...good or bad
Pros and cons??

thanks
Erin
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all depends on what the percentage pay is, could be good could be bad, you also need to look at the how the company will compensate his deadhead miles, with mileage pay, or no pay at all? I just recently turned down a job locally with percentage pay, 20 percent was the starting pay, and the guy swore up and down in 45 hours worth of work that i would be making over a thousand dollars, so i went home and crunched the numbers and just did not see the reality in that. Anyway, take a close look at % and tell your husband don't be afraid to ask questions, you definately want to make sure he's getting paid what he's worth.

Erin, the way percentage works is that the driver is paid a percentage of what is paid to the carrier, less the fuel surcharge. Most will not pay on the fuel surcharge since it is designed to reduce fuel costs to owner of the equipment. Most will not pay on deadhead miles. If the rates are good and deadhead is minimal, then he should do better on percentage. I have worked percentage and always made more than mileage. I pay my drivers percentage and most prefer that to mileage because they make more money. If the carrier is hauling cheap freight, he may do better with mileage. The advantage of working on mileage is that you are paid on deadhead and loaded miles, but won't be paid on all miles, just those that are paid to the truck for the load. Most use either pc miler or practical, some still do household goods miles. Practical miles will come closer to the actual miles driven.

I run percent pay with TMC and after 8 months and calculating it BOTH ways, I do better on percent. Questions? Feel free to call or PM.
Good Luck,
Fred