Roughly, a metric space has padding parameter $β$ if for every $Δ>0$, there is a stochastic decomposition of the metric points into clusters of diameter at most $Δ$ such that every ball of radius $γΔ$ is contained in a single cluster with probability at least $e^{-γβ}$. The padding parameter is an important characteristic of a metric space with vast algorithmic implications. In this paper we prove that the shortest path metric of every $K_r$-minor-free graph has padding parameter $O(\log r)$, which is also tight. This resolves a long standing open question, and exponentially improves the previous bound. En route to our main result, we construct sparse covers for $K_r$-minor-free graphs with improved parameters, and we prove a general reduction from sparse covers to padded decompositions.