Road haulage has been short of drivers across Europe, North America and Australasia for years, and pay has risen accordingly. It has risen from different starting points and at different speeds, so the picture is uneven.
The figures below use a typical experienced heavy goods driver's gross salary, on a single person basis, excluding allowances.
The ranking after tax
Federal deductions only; state or provincial tax is charged on top. † Foreign employees pay no CPF, so a local resident keeps less. ‡ Cantonal tax is an estimated average; the real figure depends on the commune. § Excludes the 13th and 14th salary payments, which are taxed at 6%. Converted at rates current when this guide was written.
The allowances matter more here than anywhere
Long distance drivers spend nights away from home, and every European system provides for a subsistence allowance covering meals and overnight costs. Within the published limits it is free of tax and social contributions.
- Germany and Austria publish daily rates by destination country, with separate meal and overnight amounts. For an international driver these sums are substantial and entirely untaxed within the limits.
- The European posting rules require drivers on certain international operations to be paid according to the host country's rules for parts of the journey, which complicates the calculation considerably.
- The United Kingdom operates an overnight subsistence allowance with agreed rates where the employer has approval.
- The United States allows a per diem for meals and incidental expenses subject to a partial limitation, which employers commonly structure into the pay package.
The consequence is that two drivers on identical gross salaries can have materially different take-home pay depending on how much of their work is long distance and how their employer structures the allowance. The general rules are in per diems and travel allowances.
What to check in an offer
- Whether the quoted figure includes allowances or is base pay only. This is the single most important question and it is answered inconsistently across the industry.
- Whether the allowance is paid at the full published rate, since many employers pay less than the exempt limit.
- Whether any part of the allowance exceeds the exempt limit, in which case the excess is taxable pay and should be declared.
- How overtime and waiting time are paid, since both are ordinary taxable income.
- Whether accommodation is provided and whether it is treated as a taxable benefit.
The cross-border complication
International drivers work in several countries within a single week, which raises questions about where the income is taxed and which social security system applies. The general rule is that transport workers remain insured in the country where the employer is established or where they are resident, under specific coordination provisions for the transport sector.
The document evidencing this is the A1 certificate, and drivers are among the occupations most likely to be asked for it at a roadside check. It is covered in the A1 certificate.
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