Upwork's New Fee Structure: How LATAM Freelancers Can Adapt (Deep Dive)

Introduction

Upwork recently rolled out a new fee structure that moves away from a flat 10% service fee to a variable model ranging from 5% to 15%. This shift has important implications for LATAM freelancers working with U.S. clients. Understanding how these fees work – and how to adjust your rates and workflow accordingly – is essential to protecting your earnings.

What changed & why it matters

• Old model (10% flat fee): Freelancers were charged a uniform 10% fee on all payments.

• New model (5% – 15%): Fees vary based on contract type, client category, and freelancer status. Longer-term and high-value contracts often qualify for lower fees, while some short-term or premium projects incur higher rates.

• Impact on your earnings: Depending on your mix of projects, your net income could go up or down. Adapting your pricing and project mix can help maintain yo

• Data-Driven Analysiur margins.

Visualizing the impact

To illustrate how the new fee structure affects your take-home pay, here’s a simple co/mparison:

• Scenario A: Under the old 10% flat fee, a $1,000 project cost you $100 in fees.

• Scenario B: With the new low fee (5%), that same project would cost $50 in fees — leaving you with $950.

• Scenario C: If you're charged the highest fee (15%), a $1,000 project would cost $150 — so pricing strategy matters more than ever.

Case study: How a Colombian freelancer increased his income by 35%

• By targeting higher-value and longer-term projects, he qualified for the lower 5% fee tier.

• He improved his profile and client relationships to become Top Rated and access better contract categories.

• He adjusted his rates slightly upward to offset any potential 15% fees on smaller gigs.

• Using our USD Conversion & Tax Calculator, he tracked his net earnings and planned monthly savings.

Actions & Tips for LATAM freelancers

• Re-evaluate your rates: Calculate your ideal rate with the new fee tiers and adjust accordingly.

• Focus on longer or high-value contracts: These often qualify for lower fees, boosting your take-home pay.

• Maintain a high Job Success Score: Excellent reviews and a Top Rated badge unlock better fee categories.

• Diversify your platforms: Don't rely on one marketplace — explore multiple sites to spread risk.

• Use the USD Conversion & Tax Calculator: Track your real earnings, taxes and savings to make informed decisions.

Conclusion

Staying informed about Upwork's evolving fee structure is key to maintaining and growing your freelance income. By focusing on longer-term, high-value contracts, adjusting your rates strategically and diversifying your platforms, you can turn these changes into opportunities.

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