As of 2025, the typical salary of railroad workers, especially train drivers, in the United States is a range of compensation based on experience, place of work, and specific job roles. This article addresses the average compensation of railroad workers, especially their salary and allowances.
Average salary of railroad workers
As of 2025 January, an employee in a railroad company earns an average income of about $51,942 per annum. The wage commonly varies from about $42,564 to around $61,369, whereby the majority earn between $47,033 to $56,876 annually.
Train drivers’ income
On the part of train drivers, mean annual earnings are much greater. At the start of 2025, train drivers earn on average $75,554 each year. This will change based on such factors as locale and amount of experience. To illustrate, train drivers in urbanized locations like San Jose, California, receive more than $91,969, which is well over 97% above the national standard for this job category.
Salary payment by state
Salaries among railroad workers also differ significantly on the basis of state. Take, for instance:
- New Jersey: $80,240
- South Carolina: $79,260
- New York: $64,350
- Illinois: $64,320
- Missouri: $63,440
It shows how geographic location plays a significant role in determining salaries for railroad workers.
Allowances and other payments
Apart from standard salaries, the majority of railroad workers earn allowances that add to their total pay.
For transportation staff such as railroad employees who typically need to travel or be out overnight, per diem is common. During fiscal year 2025, the IRS provided a default meal and incidental expenses per diem of $80 per day for domestic U.S. travel in the continental United States. This is tax-free income and can significantly contribute to the annual income of a driver if he or she is working full-time.
Special running staff allowance
Employees of the railroad can also receive special running staff allowances. For instance:
- Loco Pilots (Mail): $2,250
- Loco Pilots (Goods): $750
These are paid to cover the special demands and responsibilities of particular jobs in the railroad sector.
Benefits beyond salary
Railroad workers also qualify for a variety of benefits that come as part of their total compensation package:
- Retirement benefits: Railroad employees are covered under the Railroad Retirement program, which provides retirement benefits like Social Security but usually larger. For example, a retiree can qualify for about $2,700 per month in Railroad Retirement, compared to some $1,400 per month in Social Security for comparable employment histories.
- Health insurance and other benefits: Aside from retirement benefits, most railroad businesses also offer health insurance benefits alongside other fringe benefits like paid sick time and vacation. Such fringe benefits have the potential to boost job satisfaction levels as well as overall financial protection for employees.
Overall, in 2025, United States railroad workers currently have a yearly average income of approximately $51,942, while train drivers earn approximately $75,554 per year. When adding such allowances as per diem payments and special running staff allowances, overall compensation can reach a substantial increase. In addition, comprehensive retirement benefits enhance the attractiveness of careers within this career track. The combination of competitive salaries and solid benefits makes working within the railroad sector an attractive option for many people seeking stable work in transportation.
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