Recently, Upwork has changed the size of the service fees and applies floating fees.
These are BOT responses from UpWork support.
BOT: Freelancers pay a sliding fee based on lifetime billings with each client. The fees are the same whether the contracts are hourly or fixed-price and apply to bonus payments.
BOT: Here's how freelancer fees work:
BOT: - 20% for the first $500 you bill a client across all contracts with them - 10% for total billings with a client between $500.01 and $10,000 - 5% for total billings with a client that exceed $10,000
Why is there a 20% charge applied on my last payment for a completed Project of $ 505?
Also, I have an ongoing Project worth more than $ 1000 and UpWork again applies a 20% fee. Please explain to me why, when choosing a Fixed Price Project, you show that you have floating fees, and when you receive money as a Freelancer, you apply 20% on any amount.
Yes, this is all working as intended. The fees are all calculated automatically. You don't need to do anything to ensure that it's done correctly.
A $1000 fixed-price contract with a brand-new client?
Your fee will be 20% for $500 and 10% for earnings above $500.
I have a $ 505 bill paid today. Check, please.
I know that up to $ 500.1 you charge a 20% fee. I have $ 505.
Yes, 1500 USD is a new Client contract created on 05/07/2021. Check, please.
Your screenshot confirms that everything is being calculated correctly.
You posted earnings of $505
20% of 505 is $101
But your fee wasn't $101
It was $100.50
So we can see that you paid 20% for the first $500 and 10% for what you earned above $500.
As a freelancer, you’re charged a sliding fee based on your lifetime billings with each non-Enterprise client. This includes all contracts you’ve ever had with that client...
Example: On a $600 project with a new client, a freelancer’s service fee would be 20% on the first $500 and 10% on the remaining $100
I'm sorry that you find the current version unclear or misleading. Please go ahead and reword that in a way that makes more sense to you. Post your re-worked version in this thread.
I don’t know how to put it right, but it doesn’t look like sliding fees. This is more like a progressive income fee (like a progressive tax rate). Maybe you should give an example as you did in your post, but I'm not sure. Thanks for the clarification.