The $170,000 Question: 5 Shocking Facts About How Much UPS Drivers Actually Make In 2024-2025

The question of "how much do UPS drivers make" has been completely redefined by a landmark labor agreement. As of late 2024 and heading into 2025, the compensation for a full-time UPS package car driver is among the best in the entire logistics industry, cementing the role as a highly desirable, middle-class career path. The latest figures, driven by the historic 2023 Teamsters National Master Agreement, reveal a total compensation package that often exceeds $145,000 annually, a number set to climb even higher.

This article provides the most current and authoritative breakdown of UPS driver pay, detailing the hourly rates, the powerful impact of overtime, the full value of benefits, and the pay differences between various driver classifications. Forget old salary estimates—the new contract has changed the game, making a UPS driving job one of the most lucrative blue-collar positions in the United States.

Fact 1: The New Top Hourly Rate is $49.00, Leading to a $170,000 Total Compensation Package

The core of the recent pay increase for full-time UPS Package Car Drivers lies in the new five-year contract ratified by the Teamsters union in 2023. This agreement ensures that UPS drivers remain the highest-paid delivery drivers in the nation.

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• Top Hourly Rate: By the end of the contract (2028), the average top rate for a full-time package car driver will be approximately $49.00 per hour.
• Current Top Rate (2024-2025): While the $49 rate is the peak, the current top rate for experienced drivers is already well over $45 per hour.
• Annual Base Pay: At a $49/hour rate, a driver working a standard 40-hour week would earn a base salary of roughly $102,000 per year.
• Total Compensation Value: The true value of the job is in the total compensation package. UPS states that full-time delivery drivers currently earn an average total compensation package of $145,000 per year, which includes wages, health, welfare, and pension contributions. This figure is projected to reach an average of $170,000 in annual pay and benefits by the end of the five-year agreement.

Fact 2: Starting Pay is $23/Hour, with a Guaranteed 4-Year Progression

Unlike many other delivery jobs, a career at UPS offers a clear, contractual path to the top rate. The pay structure is designed to reward longevity and seniority, which is a hallmark of the union contract.

Starting Wage:

New full-time UPS drivers start at an hourly rate of $23.00. This starting rate is significantly higher than the industry average and provides a strong foundation for new hires.

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The 4-Year Progression:

The contract stipulates a clear wage progression schedule. A new driver will reach the maximum top rate after just four years of full-time driving service. This progression involves annual General Wage Increases (GWI) for all employees, plus additional contractual increases as the driver moves up the pay scale.

The 2023 contract guaranteed all current full-time and part-time Teamsters a minimum of $7.50 in raises over the life of the agreement, with $2.75 of that raise taking effect immediately in the first year.

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The "Part-Time to Full-Time" Path:

It is important to note that most full-time drivers start as part-time employees in the warehouse (loaders, sorters, etc.) to build seniority before bidding on a full-time driving position. This path is often considered a non-negotiable step to securing the high-paying driver role. Part-time employees also saw a major win in the new contract, with their minimum hourly pay raised to $21 per hour.

Fact 3: Overtime is the Real Salary Accelerator for Package Car Drivers

While the $102,000 base salary is impressive, the primary reason many drivers earn well over $120,000 in actual wages is the contractual overtime structure. UPS drivers are often required to work long hours, especially during peak seasons, and the union contract ensures they are compensated handsomely for it.

Daily Overtime Rule:

UPS drivers are typically paid time-and-a-half (1.5x their hourly rate) for all hours worked over 8 hours in a single day. In many local supplements, this daily overtime threshold is set after 9.5 hours. This is a critical distinction from the standard "over 40 hours per week" federal rule.

How Overtime Boosts Pay:

A top-rate driver earning $49/hour will earn $73.50 per hour for every overtime hour worked. If a driver works 10 hours per day (2 hours of overtime) for five days, their weekly overtime pay alone would be $735. Over the course of a year, this easily adds tens of thousands of dollars to their annual income, pushing total wages well into the six figures.

The 9.5 Rule:

The contract also includes a "9.5 Rule," which protects drivers from excessive work hours. If a driver is forced to work over 9.5 hours on a certain number of days in a week, they can file a grievance, leading to penalties for the company. This rule is designed to balance the need for overtime with the quality of life for the driver.

Fact 4: Feeder and Long-Haul Team Drivers Earn Even More

The highest-paid driving positions at UPS are not the familiar brown package cars, but the "Feeder" (tractor-trailer) roles.

• Feeder Drivers: These drivers operate the large semi-trucks that transport packages between UPS hubs and distribution centers. They require a Commercial Driver's License (CDL). Their top hourly rate is generally slightly higher than the package car top rate.
• Annual Compensation: Local Feeder Drivers are reported to make around $162,000 in total compensation per year.
• Long-Haul Team Drivers: The absolute top earners are the long-haul team drivers, who operate cross-country routes in pairs. UPS reports that these long-haul team drivers average $172,000 per year in total compensation. This compensation is often boosted by per-mile bonuses and significant overtime.

Fact 5: The $0 Premium Healthcare and Pension are Worth Over $40,000 Annually

A major component of the "total compensation package" is the value of the benefits, which are often overlooked when only focusing on the hourly wage. The benefits package at UPS is one of the most robust in the entire American workforce.

• $0 Healthcare Premiums: Full-time UPS drivers and their families receive comprehensive health coverage—including medical, dental, and vision—with absolutely no monthly premiums. This benefit alone can be valued at over $20,000 per year, as it represents a massive saving compared to most corporate health plans.
• Pension Plan: UPS contributes a significant amount to a defined-benefit pension plan on behalf of its union employees. This contribution, which is part of the total compensation figure, ensures a secure retirement for drivers who stay with the company for a long career.
• Paid Time Off: Drivers receive generous paid time off, which can include up to seven weeks of paid vacation, paid holidays, and sick leave, further increasing the value of the compensation package.

The Bottom Line: A Career-Defining Opportunity

The reality of "how much do UPS drivers make" in 2024-2025 is that it’s not just a job; it's a high-paying, middle-class career with a secure, union-backed future. The combination of a high base hourly rate, mandatory daily overtime, a clear path to a $49/hour top rate, zero-premium healthcare, and a strong pension makes the total compensation package of $170,000 a powerful draw for anyone seeking a stable, financially rewarding blue-collar profession.

While the path to a full-time driver position requires patience, often starting in the warehouse, the long-term financial security and benefits offered by the new Teamsters contract make the investment of time and effort well worth it for thousands of workers across the country.