Upwork Just Increased Fees AGAIN – 4 Things You Should Do About It Right Now

As of May 1, 2025, Upwork has officially rolled out a brand-new service fee structure—and yes, it’s a big change. Gone is the flat 10% fee. In its place? A dynamic fee system that ranges up to 15% on new contracts, depending on a variety of disappointingly vague factors.

So what does that mean for you? In this article, I’ll walk you through exactly what’s changed and, more importantly, what you should be doing now to stay competitive—and profitable—on the platform.

What’s Changed?

The new variable fee structure applies to new contracts only—any existing contracts will continue under the original 10% model (at least for now). With the updated model, Upwork may determine your fee based on a variety of factors, including but not limited to:

• The type of work you do and its demand
  

• The project’s urgency or complexity

• Whether you’re a Freelancer Plus member

• Whether the job was a direct invite or came through a proposal
  

But it’s important to note that Upwork hasn’t provided detailed transparency around how these factors are weighted. It is however important to note, unlike the sliding scale fee structure of yesteryear, once the fee is set, it won’t change for the duration of the contract.

The following is my advice on what to do now—as someone who’s earned over $700,000 on the platform.

1. Adjust Your Rates Accordingly

If you're charging the same rates you were before May 1, there's a good chance you’ll be taking home less pay than you used to on new contracts. You’ll need to recalculate your pricing strategy to reflect the new reality. For example, if your target is to earn $100/hour and your fee is now 15%, your new rate needs to be about $117.65/hour to net the same income.

Whether you bill hourly or on a fixed-price basis, build the new fees into your quotes from day one so your take-home pay isn’t taking the hit.

2. Market Yourself as an Expert (Even if You’re a Generalist)

You don’t need to niche down to succeed on Upwork. In fact, being a generalist can be a huge advantage—if you know how to position yourself correctly. Clients aren’t just looking for specialists; they’re looking for pros who can deliver results confidently and efficiently, no matter the project type.

That means your profile should clearly communicate what you do best, highlight the outcomes you’ve achieved, and show that you bring serious value to the table. Think less about narrowing your services and more about elevating how you present yourself.

When you know how to market your expertise effectively—generalist or not—you’ll not only land better clients, but you’ll also find it easier to command higher rates. And that’s key when platform fees increase. The more you’re able to raise your rates in line with your value, the less impact those fees will have on your bottom line.

3. Focus on Long-Term Contracts

If you’re not already prioritizing long-term work, now’s the time to start. Bigger projects mean fewer proposals, less time in the Jobs Feed, and more stable income. While the new fee doesn’t drop over time (like it used to with the old tiered structure), you’re still saving time and marketing spend by sticking with clients for the long haul.

Fewer clients, better income. That’s the sweet spot.

4. Explore Direct Contracts—Especially if You Have Freelancer Plus

Upwork’s Direct Contracts feature lets you work with clients outside the traditional Jobs Feed while still enjoying platform protections like escrow and dispute resolution.

Here’s the breakdown of the costs:

• Freelancers pay a 5% service fee on Direct Contracts (e.g., a $100 contract = $5 fee)
  

• Clients pay a Client Marketplace Fee and a Contract Initiation Fee
  

• Freelancer Plus members keep their 0% fee on all Direct Contracts—making that $20/month subscription a more attractive investment than it has been previously
  

Look, I get it, the fee change IS VERY frustrating—I am personally NOT A FAN. But do remember – it doesn’t have to derail your progress. 

If you take a few proactive steps now, you can continue to build a thriving freelance business on Upwork. In fact, for freelancers who understand how to navigate the changes, this could be an opportunity to sharpen your strategy, refine your positioning, and give your clients a decent excuse for a significant rate increase