Upwork is a leader in freelance and remote work, but it’s essential to know that Upwork is a business, and its service fees are how the platform makes money. Freelancers and agencies must pay service fees, while clients could encounter additional charges. You can’t avoid these fees, but understanding them helps you plan better. Let’s review the main costs involved. Let’s review the essential Upwork pricing involved.
What You Need to Know about Upwork Fees
Upwork generates revenue by charging fees to freelancers and clients using the platform. These fees vary depending on the type of user and the specific services being provided. Upwork freelancer fees are based on a sliding scale system. As a freelancer, you will pay a service fee that decreases as you earn more with a specific client. In other words, the more you work with a client over time, the lower the commission rate.
Clients are charged a marketplace fee, which is applied to each transaction with a freelancer. This fee helps Upwork maintain the platform, provide customer support, and manage transactions. Сlients may incur a one-time contract start fee when initiating a new project. This system helps Upwork cover the costs of running the platform and offering support to freelancers and clients.
Upwork Fees for Freelancers
Starting May 1, 2025, Upwork has changed its commission structure for freelancers. Instead of the flat 10% service fee, a new variable commission model is now in place. Fees now range from 0% to over 15%, depending on the demand for specific skills and other factors.
What’s Changed?
- New Contracts: All contracts started on or after May 1, 2025, are subject to the new variable commission system.
- Existing Contracts: Contracts initiated before this date will retain the flat 10% fee until completion.
- Previous Tiered Model Removed: The former three-tier commission structure (20% on the first $500, 10% up to $10,000, and 5% beyond) is no longer applied to new contracts.
How Is the New Commission Calculated?
Your Upwork service fee now depends on several factors:
- Skill Demand: High-demand skills may qualify for a 0% commission rate.
High-Demand Skill: A $1,000 project with 0% commission – you receive the full amount.
Low-Demand Skill: A $1,000 project with 15% commission – you receive $850.
- Market Saturation: Oversaturated categories may be charged higher fees.
- Other Variables: Factors such as project complexity, urgency, and your history with the client may also influence the fee.
This means the Upwork take rate, or the percentage Upwork earns from your payments, is no longer fixed and now adapts to your freelance profile and project type.
Connects: How They Work
Connects are needed to apply for jobs on Upwork. Depending on the job, each proposal costs 1–8 Connects. As of April 1, 2025, Upwork’s Connects system operates as follows:
Free Connects: New freelancers receive a one-time bonus of 50 Connects. Freelancers with a Basic membership plan receive 10 free Connects. Achieving the Rising Talent badge, or Top Rated, can also grant an additional Connects of around 30.
Paid Connects: If you need more Connects, they can be purchased for $0.15 each, available in bundles or custom amounts. However, freelancers should keep in mind the Upwork fee for freelancers when calculating the cost of securing additional Connects and applying for jobs.
Tips to Use Connects:
- Apply only for jobs that match your skills.
- Personalized and detailed proposals to stand out to clients
- Avoid using too many Connects on highly competitive jobs.
By understanding and managing your Connects wisely, you can improve your visibility on Upwork and your chances of securing projects.
Withdrawal Fees
Freelancers must pay a withdrawal fee when transferring money from Upwork to their bank or e-wallet. Examples include:
- Direct to Local Bank (ACH): Usually $0.99.
- Direct to U.S. Bank: Free
- PayPal: Typically $2.00 per transaction.
- Wire Transfer: Fees can range from $30 to $50, depending on your bank.
Note that these fees are separate from those charged by payment processors like PayPal or banks and add to your overall Upwork cost.
Optional Costs
Freelancer Plus is a paid subscription that costs $19.99 per month and includes 100 Connects, access to Upwork’s AI assistant Uma, and the ability to view competitor bids. This plan also helps freelancers keep their profiles visible even when they are not actively working. Members receive a 20% discount on Microsoft 365.
If you subscribe through the Apple App Store, the price is $27/month. This subscription is helpful for freelancers who want to stand out, apply for more jobs, and improve their chances of success.
Tips to Reduce Fees
To reduce Upwork fees, consider building long-term relationships with clients to take advantage of lower service fees (5% for earnings over $10,000). Starting May 1, 2025, Upwork will transition to a variable fee structure, so maintaining strong client relationships may continue to offer benefits under the new system.
Upgrading to Freelancer Plus can provide extra Connects and better visibility. Low-fee withdrawal methods like ACH or Direct to Local Bank can be used to reduce costs.
Upwork Fees for Clients
After looking at Upwork fees for freelancers, let’s talk about clients. If you want to hire someone on Upwork, you should also pay some fees. These costs are different from freelancer fees. They include a marketplace fee, a fee to start a contract, and some optional fees. It is good to understand these payments before hiring. This part explains the main Upwork fees for clients and helps you plan your project costs.
Processing Fees on Upwork
Upwork charges clients processing fees, which help Upwork run the platform and manage payments. These Upwork client fees cover essential services such as transaction handling and platform maintenance.
- Marketplace Fee: Clients pay up to 7.99% on every freelancer’s payment. This fee applies to various payment types, including hourly and fixed-price contract payments and consultation payments.
- Contract Start Fee: Сlient pays a one-time fee of $0.99 to $14.99 when starting a new contract. This fee is only for the first payment of each new contract.
Upwork uses this fee to keep the website running and offer support to users. Clients should check the current fees before starting a project and plan their budget carefully.
Optional Costs
Optional costs for clients on Upwork include a few additional services. There is no monthly fee for Business Plus. However, for each new contract, you pay a 10% fee on the payments made to freelancers. For contracts of $100 or less, there is a one-time $4.99 Business Plus Contract Initiation Fee.
This fee is charged when you make the first payment to the freelancer. Be aware that these costs are only for Business Plus features. Additional costs may apply based on your needs, including the Featured Job Post and Conversion Fee.
Hidden Fees for Clients
Hidden fees can include unexpected charges, such as currency conversion fees when paying freelancers in different currencies. Clients may also need to pay fees to renew subscriptions or upgrade, such as when moving to Business Plus or choosing premium job posting options.
Сlients may face chargeback fees if a payment is disputed or auto-renewal charges for premium subscriptions. To avoid surprises, clients should check Upwork’s fee policies and review all charges before making payments.
Escrow System
The Escrow system ensures safety for both clients and freelancers. When a client hires a freelancer for a fixed-price project, the client deposits the agreed amount into an Escrow account. Freelancers can see the funds but can’t access them until the client approves the work.
Clients have 14 days to approve or request changes. If you don’t reply at this time, the payment is automatically released to the freelancer. In case of a dispute, Upwork’s team helps resolve the issue. This system guarantees that payments are made when the work is completed as agreed.
Hourly and Fixed-Price Projects
Hourly and Fixed-Price projects are two different ways to pay freelancers on Upwork.
Hourly Projects: In this model, you pay freelancers per hour of work. You can track their work with Upwork’s time tracker. This option is best when the project is flexible or the work may change.
For example, if you hire a freelancer to work 10 hours a week for $15 per hour, you will pay $150 weekly.
When to choose: Better for ongoing or changing tasks.
Fixed-Price Projects: Here, you agree on a total price for the entire project. This is ideal for projects with specific tasks and deadlines. The project is divided into milestones, you pay when each milestone is completed.
For example, if you hire a freelancer for a website for $1,000, you can divide it into two milestones of $500 each. You pay when each milestone is done.
When to choose: Better for detailed, well-defined projects.
Conclusion
So if you’re wondering how much Upwork charges, the platform offers various fees for freelancers and clients. Freelancers pay a fee based on earnings, and clients pay a processing fee and a contract start fee.
The escrow system keeps payments safe, ensuring both sides are protected. Freelancers can reduce costs by building long-term relationships and choosing low-fee withdrawal methods. Clients should be aware of hidden fees like currency conversion and renewal charges or optional fees, to avoid surprises and plan their budgets effectively.