Pay & Earnings
Per Diem Pay
Per diem pay is a daily allowance intended to cover meals and incidental expenses for drivers who travel overnight and away from their home terminal. Carriers structure it as a portion of a driver's pay treated under IRS per diem rules, which can affect take-home pay and reported taxable wages compared to having the full amount paid as standard wages.
Per diem in trucking typically works by designating a portion of driver pay (often a per-day or per-mile rate) as a reimbursement-style allowance for meals and incidentals while away from home, rather than ordinary taxable wages. This can increase a driver's immediate take-home pay since less is withheld, but it also reduces reported wages, which can affect things like loan applications, unemployment benefit calculations, and Social Security contributions over time. Because the tax and pay-structure tradeoffs of per diem aren't always obvious to drivers comparing job offers, carriers and recruiters are generally expected to explain clearly how a given pay package splits standard wages from per diem rather than just quoting a single all-in rate.
Why it matters for recruiting and operations
Per diem structuring directly affects how a driver's advertised pay rate compares to actual take-home pay, so recruiters quoting pay need to be clear about how much of an offer is per diem versus standard wages to avoid confusion or distrust once a driver sees their first settlement. Transparent pay breakdowns here build trust that pays off in retention, while vague or misleading pay pitches are a common driver complaint across the industry.
Related terms
Where this shows up in Fleegital
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