Upwork Freelancer Variable Service Fees — Who Wins?

An explanation of the new Upwork Freelancer Service Fees that will begin May 1.

I work in Upwork and have been used to paying a 10% flat fee on my freelancer contracts for years.

For example, if a client paid me $500, I was used to Upwork charging 10% or $50 for their portion of handling the contract. That is known as a flat service fee.

But beginning May 1 of this year, things are changing.

Starting May 1, 2025, the for new contracts will change from a fixed 10% to a variable fee based on factors such as client demand for certain work.

So, what does that mean to those of us who are independent contractors?

Variable Service Fees Will Be the New Norm.

Let’s look at how this will affect you if you work in Upwork.

1. What Is the Change? — Instead of paying the flat service fee of 10%, the fee amount will change to either a higher or lower variable rate. The amount will be dependent on the marketplace supply and demand.
2. How Much Will I Be Charged? — The range will vary between 0% to 15%.
3. Will my existing contracts’ fees change? — The…