Upwork Introduces $49 Fee to Client-Initiated Direct Contracts

Upwork has updated the terms of its Client-Initiated Direct Contracts, introducing a new $49 monthly fee per active contract, effective July 1, 2025. While the Client-Initiated Direct Contract model itself isn’t new, this marks the first time a standardized fee has been applied to these engagements.

What Are Client-Initiated Direct Contracts?

Client-Initiated Direct Contracts enable clients to manage freelance engagements through Upwork without posting public job listings or searching the platform’s talent marketplace. These contracts still include the platform’s key features, such as streamlined payments, contract management, and dispute resolution services.

Under the new terms, clients are now billed $49 per active contract each month, with charges applied on the first of the month for the prior month’s activity. Participation in this program is invite-only and limited to clients in good standing.

There are also specific eligibility criteria for freelancers. These contracts can only be extended to individuals who have no prior history with Upwork—including accounts from Upwork’s predecessors, Elance or oDesk, before 2014. To participate, the freelancer must register a new Upwork account.

Clients may have multiple active Client-Initiated Direct Contracts at once, but each freelancer can only be engaged in one such contract at a time. All other work with that freelancer must go through Upwork’s standard engagement channels. Clients are also responsible for any additional platform fees tied to their accounts, such as the Marketplace Fee or Business Plus Fee, where applicable. Upwork notes that clients may opt out of this program at any time.

What This Means for Freelancers: Possible Fee Savings—But No Promises

For freelancers already on the platform using Freelancer-Initiated Direct Contracts, nothing changes—they’ll continue paying a flat 5% service fee on all payments received through those contracts.

However, for newly registered freelancers brought onto Upwork through Client-Initiated Direct Contracts, the fee structure could be different. Upwork’s updated terms suggest that these freelancers may qualify for reduced fees—or even no fees at all—depending on the type of contract.

“For certain Service Contracts, the Alternate Pricing may be a lower flat percentage… or may not have a Service Fee (such as an Upwork Payroll Contract, certain Any Hire Contracts, or Client Initiated Direct Contracts)... and any applicable changes to Alternate Pricing or fees will be clearly communicated to the Client.”

While this language leaves the door open for savings, Upwork has yet to publish a standard fee structure for freelancers under this model. As of now, the specifics, per usual, remain unclear and may vary by client or contract type.