Understanding Payment on Upwork

Overview

Payment on Upwork is designed to be as straightforward and secure as possible, ensuring the valuable time you put into your freelance work translates into earnings. There are a few basic steps and processes that are essential to understanding how payment operates on Upwork.

Fixed-Price vs. Hourly Projects

Firstly, it’s important to understand the two types of projects that exist on Upwork: Fixed-price and Hourly. The way you are paid varies significantly between these two types of jobs.

• Fixed-price: For such projects, your client will set a total price for the project. Payment can often be divided, with certain amounts released upon completion of specific milestones.
• Hourly: For hourly jobs, you bill the client for time spent on the project. This will typically be done weekly.

Getting Paid

Before you can receive payment, you need first to set up a payment method. Upwork supports several different payment methods including PayPal, direct bank deposit, Payoneer, and more. Keep in mind that it can take anywhere from 2-5 business days for your funds to be available depending on your chosen method.

Upwork Service Fee

Upwork takes a service fee from freelancers’ earnings. This is a sliding fee based on your lifetime earnings with a specific client. This fee ranges from 5% to 20%. Always consider this percentage when bidding on projects to ensure the final payment amount will be worth your time.

Protection for Freelancers

Be assured you’re covered by Upwork’s Payment Protection. For fixed-price jobs, this means ensuring your milestones and payments are submitted through Upwork. For hourly jobs, note the importance of using the Upwork Desktop App to track your hours. This will qualify you for Hourly Protection.

Remember

Prompt, reliable payment for your work is the backbone of freelance success. So always stay knowledgeable about payment processes on Upwork.