Announcing new, simpler fees on Upwork
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We are excited to announce our new simplified freelancer fee structure, an industry-low rate designed to offer you more ability to price your services competitively and lower the fee on all new talent/client relationships. In combination with our freelancer fee update, we have also made minor adjustments to pricing for clients:
Beginning May 3, 2023, we are moving all freelancers to a 10% fee rate and retiring our sliding scale fee structure. For those currently working on projects at the 5% level of our existing tier structure, we are pleased to honor those rates through the end of 2023.
Beginning April 26, 2023, we're implementing a client contract initiation fee of up to $4.95 on Upwork's Marketplace and Project Catalog. This is a once-per-contract fee, assessed when clients make their first payment to a freelancer.
What these changes mean for freelancers
Ultimately, the purpose of our new pricing is to bring you more job opportunities that translate into work you love with clients you value. We know you work incredibly hard for everything you earn, which is why we are committed to creating the right tools and pricing structure to maximize your earnings potential. We are here to support your success as we shape the future of work together.
Existing contracts with a 20% fee: beginning May 3, 2023, you will see a reduction in your fee rate from 20% to 10% on existing contracts. You don't need to do anything; this will automatically update. Please note the new 10% fee rate includes all contracts with a client –– whether hourly, fixed-price, or a Project Catalog project.
Existing contracts with a 10% fee: these engagements will not experience a change. Please keep in mind if your current contract(s) reaches $10,000 in total billings with a client after May 3, 2023, your fee will stay at a 10% fee rate.
Eligible contracts with a 5% fee: for contracts valued at $10,000 or more on or before May 3, 2023, we are pleased to honor the existing 5% service fee through the end of 2023. After December 31, 2023, all remaining contracts will move to a 10% fee rate.
New contracts: any contract started on or after May 3, 2023, at any value, will have a 10% fee rate.
Hourly contracts: any hours you add for the week of December 25, 2023, will be invoiced on January 1, 2024, and reflect the 10% freelancer service fee.
Fixed-price contracts: any work approved by your client on January 1, 2024, or after will be assessed the 10% freelancer service fee.
If you aren’t already doing so, we encourage you to take advantage of some recent enhancements that can help increase your earnings:
- Consultations help you land new relationships and build your reputation as an expert.
- Talent Badges help you get discovered and win more clients.
- Full-time opportunities help when you are ready for a different type of work engagement.
- Availability Badges help you signal to clients that you are available to take on new work.
- Certifications verified by Credly highlight skills, so you can find well-matched opportunities.
- Upwork Academy helps you succeed through an interactive suite of courses and tools.
FAQs
- Freelancers will pay a fixed rate of 10% for freelancer service fees on future contract earnings per contract and will no longer have to pay 20% on new contracts. Freelancers who are currently paying a 5% freelancer service fee on a contract will continue to pay 5% on that contract through the end of 2023.
- Clients will pay a one-time contract initiation fee of up to $4.95 at the start of each new contract.
We plan to start making the changes effective on May 3, 2023, Pacific Time for contracts that invoice on or after that date. However, if you’re currently paying a 5% freelancer service fee on a specific contract, the 5% rate will continue through the end of 2023.
Once the fee changes go into effect, you’ll see the 10% freelancer service fee when you create a proposal. You’ll also see it when you enter your hourly rate for the first time or edit your rate on your profile.
If your current contract has a 5% freelancer service fee, you will continue to have that rate through the end of 2023. If your contract has a 20% freelancer service fee, you will switch to the 10% fee on your next invoice.
No, the new rate will be effective on future earnings for all current and future contracts. Freelancers who paid 20% freelancer service fees at the beginning of an existing contract will not get a refund.
If you start a new contract, your freelancer service fee will be 10%. The 10% fee applies to all new contracts, even if you have a past or existing contract with the client.
Yes, the 10% freelancer service fee will be for all future earnings on contracts, including agency contracts. For agency contracts that are already paying a 5% freelancer service fee, the 5% rate will continue through the end of 2023.
No, the rate for featured jobs will be a 10% freelancer service fee.
Upwork Payroll and Any Hire contracts will not be impacted by these fee changes.
If you have an Enterprise contract that has a 5% freelancer service fee, your fee will move to 10% at the end of 2023. If you have a 5% Marketplace contract that switches to a new Enterprise contract during 2023, we will honor the 5% freelancer service fee for the new Enterprise contract through the end of 2023.
If your BYO contract does not currently require any freelancer service fees, you will not see a change. We are not adding freelancer service fees to contracts that do not currently include them.
If you are paying a freelancer service fee on your BYO contract, the new 10% freelancer service fee will apply to your contract. If your contract is already at a 5% freelancer service fee rate, you will continue at the 5% rate through the end of 2023.
No, freelancers who work on Direct Contracts fees will continue to pay a processing fee of 3.4% and no additional freelancer service fees. Your clients will continue to pay their usual processing fee, and we are not charging them a contract initiation fee.
No, the price of Connects is not changing at this time.
You may have noticed we recently adjusted the number of Connects per job to better match the demand for jobs in the Marketplace.
The value of providing you a thriving platform where you can earn income and grow your business — a place where you can choose how and with whom you want to work, build your reputation, and drive leads — is better reflected and supported by a simpler fixed percentage fee than by the current sliding-scale tiered fee of 20/10/5%.
While we believe this change to a simpler fee structure will benefit most freelancers over the long term, we understand that this change has an immediate impact on freelancers working in higher-value relationships, which is why we are honoring the existing 5% rates through the end of 2023.
What these changes mean for clients
Ultimately, the intended purpose of introducing this new, industry-low rate for freelancers is to bring you the benefit of more competitive prices and access to even more highly skilled talent to help your business grow.
Beginning April 26, 2023, Marketplace and Project Catalog contracts will include a contract initiation fee of up to $4.95.* This is a once-per-contract fee assessed when you first pay a freelancer. These changes only apply to contracts created on or after April 26, 2023, and will be reflected in the first billing cycle.
We will charge this fee when you make the first payment on a contract, and we will add it to the escrow amount that you deposit for a new fixed-price contract. No action is required; this will be an automatic charge for future contracts.
We’d like to take this opportunity to also highlight some of the products and features we’ve created to support your ongoing success on Upwork in all the ways you want to work, from small projects to full-time:
- Consultations provide you the ability to book 1:1 sessions with experts.
- Project Catalog™ allows you to browse pre-defined projects.
- Full-time hiring on Upwork helps you make informed choices in deciding who to hire through contract-to-hire jobs that start with a short-term engagement.
*Contract initiation fees may vary from contract to contract over the next few months as we collect more data and feedback. Once testing ends, we will update our documentation in Community and the Help Center to reflect the final amount.
FAQs
The contract initiation fee is a charge of up to $4.95 for clients on new contracts on Upwork’s Marketplace and Project Catalog. We will charge this fee once per contract when you make the first payment to a freelancer.
We will begin charging the fee for all new contracts created on or after April 26, 2023, Pacific Time. This is a one-per-contract fee that we will charge with each new contract. It will not be retroactive for existing contracts.
Once the contract initiation fee goes into effect, you will see it as a separate line item during checkout when you make an offer or purchase a project.
No, the contract initiation fee will only apply to contracts created on or after April 26, 2023, Pacific Time.
No, we realize that not all contracts have work started on them or funds paid out. We will charge this fee when you make the first payment to a freelancer on the contract, including releasing milestones, making hourly payments, bonuses, or any other payments to freelancers.
Yes, you will fund the once-per-contract initiation fee in the first escrow deposit for fixed-price contracts.
Yes, you will deposit the fee in escrow. However, if the project or consultation is canceled with no payment released to the freelancer, the contract initiation fee will be returned to you with the rest of your escrow deposit.
No, the contract initiation fee is a flat fee of up to $4.95. You’ll be able to see the exact amount for your contract when you check out. The contract initiation fee will show as a separate line item.
No, the once-per-contract initiation fee will not be refunded after you have made a payment to a freelancer, even if the freelancer issues you a refund.
No, the once-per-contract initiation fee isn’t eligible for a refund after you have made a payment to a freelancer, even if the contract payment to the freelancer is refunded due to a dispute.
You will have a separate invoice for the contract initiation fee, which includes the fee and any applicable taxes on the fee. You’ll also see the fee and any applicable taxes as line items on your Transaction History Report. It will not display on your Weekly Billing Summary, which reflects payments to freelancers.
Yes, you will pay the contract initiation fee for the start of a new contract with an agency.
Yes, each new contract with a different freelancer will have a once-per-contract initiation fee, even if all the freelancers work for the same agency. If you hire 3 freelancers to work on a job, you’ll pay the fee 3 times.
Yes, the fee is per contract. If you start a new contract, you will pay the contract initiation fee even if you have worked with the freelancer before.
That depends on whether you have already activated the contract with a payment to the freelancer. Here’s how it works for hourly and fixed-price contracts:
- For contracts that started as hourly:
- If the freelancer hasn’t logged any hours yet, you can cancel without a contract initiation fee on the initial contract, since we don’t charge the fee until you make your first hourly payment.
- If the freelancer has already logged hours, you will pay the contract initiation fee on both contracts. You will need to pay the freelancer for the hours they already logged, and we will charge this fee. Then you will pay another contract initiation fee when you fund the first milestone of the fixed-price contract.
- For contracts that started as fixed-price:
- If you haven’t funded any milestones yet, you can cancel without being charged the contract initiation fee on the initial contract.
- If you have already funded a milestone or purchased a project but have not yet released a payment to the freelancer, you can get a full refund from escrow as long as your freelancer agrees.
- If you’ve already released at least one payment to the freelancer, you will have to pay a contract initiation fee on both contracts.
No, those services have their own fee structures designed specifically for the features they offer. We are only charging this contract initiation fee on Upwork Marketplace and Project Catalog contracts.
No, we will not apply an additional marketplace fee to the contract initiation fee. The client marketplace fee only applies to the contract value for the amount you pay the freelancer.
Service fee update exceptions
Freelancers will not pay service fees when working for a client on an Any Hire contract. These contracts are negotiated with the individual client hiring freelancers they met off of Upwork or who have paid the conversion fee to work with a freelancer they found on Upwork’s Marketplace.
We are not charging a contract initiation fee for Any Hire contracts; this service has its own fee structure designed specifically for the features it offers.
Freelancers in a Direct Contract, working with a client without an account who pays through Upwork, will continue to pay the Direct Contracts processing fee of 3.4%. They will not have to pay the 10% freelancer service fee.
We are not charging a contract initiation fee for Direct Contracts; this service has its own fee structure designed specifically for the features it offers.
Freelancers with a 0% service fee BYO contract will not experience a change in service fees. If a freelancer has a BYO contract with freelancer service fees, those fees will move to or remain at 10% on May 3, 2023.
We are not charging a contract initiation fee for BYO contracts; this service has its own fee structure designed specifically for the features it offers.
Most Enterprise contracts currently have a 10% service fee; the previous sliding scale fee structure did not apply. However, if a freelancer is already paying the reduced 5% fee, they will keep the 5% fee rate through the end of 2023.
We are not charging a contract initiation fee for Enterprise contracts; this service has its own fee structure designed specifically for the features it offers.
Upwork Payroll will not be impacted by these fee changes.
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