Upwork, a leading platform for any freelancer, has decided to make fee changes. They have decided to simplify the fee structure by implementing a fixed percentage fee instead of the current sliding-scale tiered fee of 20%, 10%, or 5% to better reflect and support freelancers’ earnings. This change will benefit most freelancers in the long run. However, considering the immediate impact on those working in higher-value relationships, Upwork will continue to honor the existing 5% rate until the end of 2023.
Existing contracts with a 20% fee will be charged a 10% fee on the next invoice. Contracts that currently have a 5% fee will continue to have the same fee until the end of 2023.
Upwork New Fee Change after May 2023
After May 3rd, 2023, Upwork will charge a flat fee of 10% on all billings with each client, regardless of the lifetime billings amount. This means that freelancers will no longer have to pay different fees based on how much they’ve earned with a particular client in the past.
After May 3rd, 2023, Upwork will charge a flat freelancer fee of 10% on all billings with each client, regardless of the lifetime billings amount.
https://support.upwork.com/hc/en-us/articles/211062538-Freelancer-Service-Fees#exceptions
Starting May 3, 2023, Pacific Time, all new contracts will have a freelancer service fee of 10% regardless of their value. There will no longer be different fees based on the contract value. Existing contracts with a 20% fee will be charged a 10% fee on the next invoice. Contracts that currently have a 5% fee will continue to have the same fee until the end of 2023. For more details you can visit Upwork Support.
Previous Upwork Freelancer Fee Before May 2023
Previously, Upwork charged a sliding scale service fee based on a freelancer’s lifetime billings with each client. This fee ranged from 5% to 20% of the freelancer’s earnings for each project. The service fee applied to freelancer’s earnings varies based on the amount earned from a client.
- A 20% fee for earning between $0 and $500,
- A 10% fee for earning between $500.01 and $10,000, and
- A 5% fee for earnings of $10,000.01 or more from a client.
The Change in Freelancer Fee Structure brings great joy to those who were charged 20% . Those who were availing 5% fee would not see it like that yet Upwork will continue to honor the existing 5% rate until the end of 2023. You might be interested in reading How to earn Secondary Income through Freelancing
