The UPS pay scale
varies depending on the position, whether the employee is part-time or full-time, their seniority, location, and whether the job is covered by a union agreement. For many U.S. UPS workers represented by the Teamsters, wages are governed by the current five-year agreement that runs through July 31, 2028.
One important point is that there isn’t a single UPS hourly rate for everyone. A package handler, delivery driver, tractor-trailer driver, mechanic, and office employee can all have different pay structures.
UPS Part-Time Pay
Part-time positions are often one of the easiest ways to get started at UPS. These jobs can include warehouse workers, package handlers, and other support positions.
Under the 2023–2028 Teamsters agreement, new part-time hires were established at $21 per hour, with a progression to $23 per hour. Existing part-time employees can have different rates based on their seniority and applicable wage provisions.
The contract also provides general wage increases over its five-year term. For part-time employees, the scheduled general increases are $2.75 in 2023, $0.75 in 2024, $0.75 in 2025, $1.00 in 2026, and $2.25 in 2027, although an employee’s actual rate can depend on their particular classification and circumstances.
UPS also states that hourly jobs are generally paid weekly, which can be attractive to people looking for frequent paychecks.
UPS Full-Time Pay
Full-time UPS employees generally have a different pay progression. This is particularly important for delivery drivers.
The 2023–2028 Teamsters agreement established scheduled wage increases for full-time employees. The general wage increases are $2.75 in 2023, $0.75 in 2024, $0.75 in 2025, $1.00 in 2026, and $2.25 in 2027. Together, those increases total $7.50 per hour over the contract period.
The Teamsters’ wage examples show an average full-time top rate of $41.50 per hour before the 2023 increase, rising to $49 per hour in 2027 under the example used in the agreement. Actual rates can vary because local supplements and an employee’s existing rate can affect compensation.
UPS Driver Pay Scale
UPS drivers are among the company’s best-paid hourly employees.
Under the Teamsters agreement, new full-time package car drivers, feeder drivers, and certain other full-time employees enter a wage progression. The agreement specifies progression points at the start, 12 months, 24 months, and 36 months, with the employee reaching the applicable top rate after 48 months.
For example, the contract’s progression schedule for qualifying new full-time positions lists:
- Start: $21–$23 per hour, depending on the applicable progression
- 12 months: $23–$24
- 24 months: $24–$25
- 36 months: $28.75–$30.75
- 48 months: Top rate
These figures are contract progression figures rather than a guarantee that every UPS driver in every location will have exactly the same wage. Local agreements and employee circumstances can affect the actual rate.
Why UPS Drivers Can Earn More
The hourly wage is only part of a UPS driver’s potential earnings. Overtime can significantly increase total pay for eligible employees.
UPS delivery work can involve long and physically demanding days, particularly during busy periods. If an employee works qualifying overtime hours, those hours can increase their overall earnings.
UPS has also highlighted the value of its overall compensation package. The company previously reported that UPS delivery drivers received an average total compensation package of approximately $145,000 per year, including wages and benefits. This figure should not be confused with base salary or take-home pay.
UPS Warehouse Worker Pay
Warehouse workers and package handlers are generally hourly employees. Their duties can include sorting packages, loading and unloading trailers, and preparing shipments for delivery.
UPS currently describes its warehouse-worker positions as hourly jobs and notes that warehouse workers are paid weekly.
For Teamsters-represented package handlers, the 2023 agreement established a $21-per-hour minimum for existing part-time employees and a $21 starting rate for new part-time hires under the contract’s provisions. Some employees can earn more because of seniority, longevity increases, market-rate adjustments, or other applicable provisions.
Does Seniority Affect UPS Pay?
Yes. Seniority can make a significant difference in UPS pay.
The UPS-Teamsters agreement includes longevity increases for certain part-time employees in addition to general wage increases. For example, the contract’s wage examples show different pay rates for employees with less than five years, five to ten years, ten to fifteen years, and fifteen or more years of seniority.
This means two UPS employees doing similar work may not necessarily receive exactly the same hourly wage.
UPS Pay Plus Benefits
Another reason the UPS pay scale is attractive is that eligible employees can receive benefits in addition to their wages.
UPS lists benefits that can include healthcare, retirement benefits, paid time off, education assistance, and other employee benefits. The company notes that benefits vary by role and location.
For Teamsters-represented employees, the collective bargaining agreement also provides for pension and healthcare benefits.
Therefore, someone comparing UPS with another employer should look at the total compensation package, rather than simply comparing hourly wages.
Is UPS Pay Good?
Overall, UPS offers competitive pay, particularly for employees who remain with the company long enough to progress into higher-paying full-time positions.
The biggest difference is often between starting pay and long-term earning potential. Someone entering a part-time warehouse position may start at a relatively modest hourly rate compared with an experienced full-time driver. However, opportunities for wage increases, overtime, promotions, and benefits can make the long-term compensation considerably higher.
The exact amount you can earn will depend on your job, location, seniority, hours worked, overtime, and applicable union or local agreement.
