Upwork announced a new simplified freelancer fee structure, an industry-low rate designed to offer more ability to price services competitively and lower the fee on new talent/client relationships.
Freelancers will pay a fixed rate of 10 percent for freelancer service fees on future contract earnings per contract and will no longer have to pay 20 percent on new contracts. Freelancers who are currently paying a 5 percent freelancer service fee on a contract will continue to pay 5 percent on that contract through the end of 2023. This will be effective from May 3, 2023.
Clients will need to pay a one-time contract initiation fee of up to $4.95 at the start of each new contract. Beginning April 26, 2023, Upwork is 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.
Upwork said it’s moving all freelancers to a 10 percent fee rate and retiring its sliding scale fee structure. For those currently working on projects at the 5 percent level of its existing tier structure, it will honor those rates through the end of 2023.
Existing contracts with a 20 percent fee: beginning May 3, 2023, there will be a reduction in your fee rate from 20 percent to 10 percent on existing contracts. This will automatically update. The new 10 percent fee rate includes all contracts with a client –– whether hourly, fixed-price, or a Project Catalog project.
Existing contracts with a 10 percent 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 percent fee rate.
Eligible contracts with a 5 percent fee: for contracts valued at $10,000 or more on or before May 3, 2023, we are pleased to honor the existing 5 percent service fee through the end of 2023. After December 31, 2023, all remaining contracts will move to a 10 percent fee rate.
New contracts: any contract started on or after May 3, 2023, at any value, will have a 10 percent fee rate.
The 10 percent freelancer service fee will be for all future earnings on contracts, including agency contracts. For agency contracts that are already paying a 5 percent freelancer service fee, the 5 percent rate will continue through the end of 2023. Upwork Payroll, Any Hire, and Talent Scout contracts will not be impacted by these fee changes.
If you have an Enterprise contract that has a 5 percent freelancer service fee, your fee will move to 10 percent at the end of 2023. If you have a 5 percent Marketplace contract that switches to a new Enterprise contract during 2023, Upwork will honor the 5 percent freelancer service fee for the new Enterprise contract through the end of 2023.