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20% fee still charged after $500.00 billed

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Active Member
Daniel Paolo G Member Since: Jul 10, 2017
1 of 10

I already earned more than $500 billed to my client and I always still get charged with 20% fee. 

Isn't it supposed to be just 10% starting from $500.01?

Community Guru
Tiffany S Member Since: Jan 15, 2016
2 of 10

Yes, it is 10% as soon as you cross the $500 mark, but your profile only shows that you have earned $441 on that job. Is it possible that you crossed $500 this week, but you're looking at the payment/fees for last week?

 

If you reach $500 in the middle of a payment cycle, you'll pay 20% on the part below $500 and 10% on the rest, then it will be all 10% from there on out.

Moderator
Avery O Moderator Member Since: Nov 23, 2015
BEST ANSWER
3 of 10

Hi Daniel Paolo, 


I would like to confirm what Tiffany has shared. As an 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 have also checked and can see that you have crossed the 20% threshold, and your future earnings on this contract will be charged the 10% fee. 

 

You may read more about the freelancer service fees in this help article


-Avery
Untitled
Active Member
Boris S Member Since: Sep 30, 2017
4 of 10

Hi Avery,

 

I have a similar problem. On my profile, it says that I have 600+ earnings but service fee is still 20%. Maybe I`m not looking at a right place to see total or relevant earnings from which upwork derives the percentage.  Could you please help me with this?

 

Thank you

Boris

Moderator
Goran V Moderator Member Since: Mar 24, 2017
5 of 10

Hi Boris,

Freelancers are charged a sliding fee based on your lifetime billings with each client (across all contracts you’ve ever had with that client company) and not on your total earnings. Service fees are the same whether the contracts are hourly or fixed-price.

  • 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

If you would like to read more details about this check out this Help Article.


Untitled
Active Member
Boris S Member Since: Sep 30, 2017
6 of 10

So, no matter the overall earnings, each contract with a different client with billing lower than $500 will have 20% fee?  Am I getting it right?

Moderator
Goran V Moderator Member Since: Mar 24, 2017
7 of 10

Hi Boris,

Yes that is correct, once you have reached $500 the fee will be lowered to 10%.


Untitled
Active Member
Ying C Member Since: Feb 6, 2018
8 of 10

Thanks, Boris, you just solved my question. So whenever have a "small" project, make sure it's over $500 budget work!! Otherwise, it's Upwork take most of the earning. 

Community Leader
Craig G Member Since: Jun 20, 2017
9 of 10

@Ying C wrote:

Thanks, Boris, you just solved my question. So whenever have a "small" project, make sure it's over $500 budget work!! Otherwise, it's Upwork take most of the earning. 


Well, yeah, if 20% constitutes "most."

 

But also note that the fees are per client, not per contract. So if John Smith pays you $100 on one contract, and $250 on another, then $200, then $150, then $600, then $100, etc., etc., it's just the first, second, and part of the third contract where Upwork's fee is 20%. After that you have earned more than $500 total with John Smith, so the fee gets reduced to 10%.

Community Guru
Preston H Member Since: Nov 24, 2014
10 of 10

This question keeps getting asked. Maybe Upwork's messaging/information about this needs to be improved.

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