Web Development » UpWork » Who Pays the Fee on UpWork?

Who Pays the Fee on UpWork?

Last updated on September 30, 2022 @ 11:23 am

Upwork, formerly known as Elance-oDesk, is a global freelancing platform where businesses and independent professionals connect and collaborate remotely. Businesses post projects, and freelancers from around the world compete for those projects. Once a project is awarded, the business and the freelancer work together to complete the project via the UpWork platform.

There are no UpWork membership fees for businesses or freelancers. However, when a project is awarded, UpWork collects a service fee from the business. This fee is calculated as a percentage of the total project value, and varies depending on the billing method used:

Hourly billing: UpWork charges a 10% service fee for hourly contracts. This is in addition to the hourly rate charged by the freelancer.

Fixed-price billing: UpWork charges a 20% service fee for fixed-price contracts. This is in addition to the price agreed upon by the business and freelancer.

Who pays the UpWork service fee?
The business pays the UpWork service fee. This fee is in addition to the hourly rate or fixed price charged by the freelancer.

PRO TIP: There is a service fee charged by Upwork for every contract. This fee is in addition to the payment you make to your freelancer. The service fee is calculated as a percentage of the total amount you pay to your freelancer, including any bonuses.
Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.