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Adam's avatar
Adam B Community Member

Upwork fee

Hi,

I just saw when I wanted to change my rate per hour, that when you bill over 500$ with a client, the Upwork fee will be 10%. The problem is that I had a milestone of 560$, but Upwork took 20% of it and not 10% like they have said. How is that possible? Can I have my refund of the 10% please?

The Upwork message on the profile rate: "The Upwork Service Fee is 20% when you begin a contract with a new client. Once you bill over $500.00 with your client, the fee will be 10%."

 

Best regards,

 

Adam

7 REPLIES 7
Preston's avatar
Preston H Community Member

Don't worry about this.

 

None of the fees are calculated by hand by Upwork employees who might accidentally fail to give you all of the money that you deserve.

 

It's all automatic, and it is handled correctly.

Adam's avatar
Adam B Community Member

Hi Preston,

 

Thank you for your respond, so how and when am I going to have my refund?

 

Best regards,

 

Adam

Preston's avatar
Preston H Community Member

Adam: You don't need to do anything. It is handled automatically.

Adam's avatar
Adam B Community Member

Preston, the problem is that first, I didn't get any message that I was going to have a refund of the 10% and secondly, my 20% fees are already gone. That's why I was asking when and how am I going to get my refund.

 

Best regards,

 

Adam

Andrea's avatar
Andrea G Community Manager

Hi Adam,

 

Rest assured, the fee has been charged correctly. Here’s how the Service Fee works:

 

  • $0-$500 in earnings from a client: 20% service fee applied to earnings
  • $500.01-$10,000 in earnings from a client: 10% service fee
  • $10,000.01 or more in earnings from a client: 5% service fee

This example applies to your case: On a $600 project with a new client, your freelancer service fee would be 20% on the first $500 and 10% on the remaining $100. Your earnings after fees would be $490.

 

I hope that helps and please feel free to ask any other questions you may have,

~Andrea
Adam's avatar
Adam B Community Member

Hi Andrea,

 

Thank you for your response. I understand how it works now.

 

Best regards,

 

Adam

Luqman's avatar
Luqman M Community Member

The first $500 of you bill would be charged a 20% fee and the remaining $60 would be charged with the new 10% fee. From there onwards, any new contract with the same client would be charged 10% until you hit the next fee reduction amount