Drivers that have shown interest in HGV driving often have questions about compensation. It’s simple to see why this is a priority for drivers. No matter what field you’re in, you’ll want to know that you’re receiving fair pay for your labor. Many people choose to transition to a new career because of pay. Not all HGV drivers are compensated in the same way. However, if you look at statutory minimums, guidelines, and current trends, you can get a better sense of what the pay is like in this field at the present time.
Current Statutory Minimums
Laws regarding minimum wage apply to all industries, including the HGV industry. The Apprenticeship Levy, National Minimum Wage, and National Living Wage all apply here.
National Minimum wage guidelines that minimum payment can change based on the age of the worker. Current guidelines have a minimum hourly wage of:
£7.38 for those that between the ages of 21 to 24
£5.90 for ages 18 to 30
£4.20 for ages 16 to 17, although most won’t be driving at these ages
£3.70 is the rate for apprenticeships, though some conditions do apply
It’s important to remember that you’re likely to be paid more than the minimum wages, and can also depend on how many different licences you hold, for example c1 licence. Employers often opt to offer higher wages to drivers because it can lead to better performance at all. The purpose of the National Living Wage is to ensure that workers have wages they can live on regardless of their age. For workers over the age of 25, the National Living Wage was set at £7.20 back in 2016. In 2017, it went up to £7.50, followed by an increase to £7.83 in 2018 and £8.21 in 2019.
The Apprenticeship Levy took effect on 6 April 2017. It applies to firms that have a gross payroll cost higher than £3m and are required to pay 0.5% of their gross payroll. The only way that Levy payers can reclaim payment is through approved apprenticeships. Different countries have different systems in place for Adult educational funding. Some countries are still developing a system for this.
In September 2017, there was a new system introduced. The system presented employers with different size options that allowed them to pay or reimburse drivers on a consistent basis. The available options are:
Payments at benchmark scale rate
Agreed industry scale with a potential overnight subsistence for lorry drivers
Claims for direct expenses
Agreed scale rate for industries
Although there isn’t a set amount of payments, there is an agreed upon scale within the industry for the reimbursement and pay of HGV drivers that have been working and sleeping away from their homes. This scale has a long history and has stayed consistent since the year 2013. Drivers equipped with a sleeper cab have a rate of £26.20. Drivers that do not have a sleeper cab pay £34.90. Employers must determine whether they want to use the scale or provide reimbursement for the actual money spent. This will change from one employer to another. Employers are free to choose the reimbursement model that best suits their needs.
What Lies Ahead
While all of this information may seem overwhelming, there are plenty of things for drivers to look forward to. Over the last year, 79.1% of HGV drivers stated that they saw an increase in their pay. On average the increase equated to 2.57% of the driver’s salary. Pay rates were lower in the north and higher in the sound. Approximately 85% of all HGV drivers are earning considerably more than the National Living Wage. With that said, exactly how much these drivers are earning is harder to state.