Finance guide

Driver pay models in trucking: CPM vs percentage vs hourly (and a settlement checklist)

Driver pay is one of the fastest ways to lose trust inside a fleet. When settlements are inconsistent or deductions are unclear, disputes rise and retention drops.

The best pay model is the one you can calculate accurately, explain clearly, and settle quickly every week.

Quick definition

A driver settlement is the pay packet that explains how gross pay was calculated (miles, rate percentage, hourly, bonuses) plus deductions (fuel, advances, tolls, escrow) and reimbursements.

The 3 most common driver pay models (and when they fit)

Most fleets use one of these three pay structures. The fit comes down to how consistently you can calculate and explain the settlement.

1) CPM (cents per mile)

Best when
  • You want simple, predictable pay math.
  • You run consistent lanes.
  • You can track miles reliably and transparently.
Watch outs
  • "Which miles count?" disputes (hub vs practical vs paid miles).
  • Accessorial handling (detention, layover, stop pay) must be explicit.

2) Percentage of load revenue

Best when
  • You want drivers aligned with revenue outcomes.
  • You run variable rates and want pay to scale with gross.
Watch outs
  • Drivers need transparency into rate, accessorials, and deductions.
  • Disputes rise if the load revenue basis is not clear (gross vs net, fuel surcharge treatment).

3) Hourly / salaried

Best when
  • Dedicated routes, local work, or time-based operations.
  • You want predictable payroll.
Watch outs
  • Time tracking must be clean.
  • Overtime rules and exceptions need consistency.

The real issue: pay model doesn't matter if settlements are messy

Most pay disputes come from process failures, not pay rates. If you want fewer disputes, treat settlements like a workflow, not a spreadsheet.

  • Missing paperwork (POD, receipts) delays closeout.
  • Manual deductions get applied inconsistently.
  • Reimbursements get forgotten.
  • Settlement math lives across spreadsheets and text threads.
  • Drivers do not see the full "why" behind the paystub.

Driver settlement checklist (use this every week)

Before you publish a settlement, confirm these are captured per load:

Earnings inputs

  • Miles (and which mileage standard you use).
  • Rate or revenue basis (for percentage pay).
  • Stop pay.
  • Detention / layover pay.
  • Bonuses (safety, performance, referral).

Deductions

  • Fuel (cards or advances).
  • Cash advances.
  • Tolls.
  • Maintenance escrow (if applicable).
  • Insurance / permits (if applicable).
  • Equipment / supplies.

Reimbursements

  • Lumper reimbursements.
  • Approved out-of-pocket expenses (with receipts).

Documents (keep disputes low)

  • POD attached.
  • Lumper receipts attached.
  • Any approvals for accessorials attached.

If any of the above is missing, your settlement will trigger questions.

How to reduce disputes without changing pay rates

Use these guardrails:

  • Define paid miles in writing and apply consistently.
  • Standardize accessorial documentation (detention forms, receipts, timestamps).
  • Publish settlements on a schedule (drivers trust consistency).
  • Attach source documents so drivers see what payroll sees.
  • Make deductions traceable to a specific load or transaction.

Where a trucking TMS helps driver pay the most

A TMS reduces pay disputes by connecting:

  • Dispatch data (loads, miles, schedules).
  • Driver workflow (PODs, receipts, exceptions).
  • Billing outcomes (accessorials captured correctly).
  • Deductions (fuel, toll, advances).
  • Settlement publishing and acknowledgment.

Instead of stitching spreadsheets together, you generate settlements from the same live plan that ran dispatch and billing. If you are still defining what a TMS covers, start with what a trucking TMS is.

How DENEMO helps fleets publish cleaner settlements

DENEMO is built so driver packets close themselves. Settlements assemble from load data, documents, and deductions in the same system that runs dispatch and billing.

What fleets typically want:

  • Settlements generated from real load and deduction data (not manual math).
  • Document-backed packets (PODs and receipts attached).
  • Consistent weekly publishing cadence.
  • Fewer disputes because the why is visible.
Next step

See driver pay workflows live.

Ask us to show one full cycle: load -> documents -> invoice -> settlement packet.

FAQ

Is CPM or percentage pay better for retention?

It depends on lane consistency and transparency. Retention improves when pay is accurate, predictable, and easy to understand.

What causes the most driver pay disputes?

Unclear mileage rules, inconsistent deductions, and missing documents like detention forms, receipts, and PODs are common root causes.

How often should settlements be paid?

Many fleets run weekly settlements. The key is consistent cadence and clear documentation.

Can I automate deductions like fuel and tolls?

Yes. If deductions are captured consistently and tied to the right driver and load, a TMS with integrations can reduce manual entry.

What should a driver pay stub include?

Earnings basis, accessorials, reimbursements, deductions, and supporting references or documents so drivers can verify quickly.

Next step

See driver pay workflows live.

Ask us to show one full cycle: load -> documents -> invoice -> settlement packet.

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