Earlier this month, the leading online workplace for freelancers, Upwork, has announced that there will be a big change in their fees. Instead of the current 10% fee that is applicable to all transactions, the new sliding service fee will depend on the amount that you earn from your client.

Through an open letter posted on the company’s blog, Upwork CEO Stephane Kasriel explained that this move isĀ “to reward large, repeat relationships and more fairly cover the costs of small projects, which are more expensive for Upwork to support.”

According to Kasriel, small projects, aside from not being profitable, is also costly to maintain compares to the long-term and repeat contract with the clients because it requires almost no maintenance at all due to the trust that’s been developed and a nice working relationship.

Starting in June, Upwork will charge:

  • 20% from your first $500 that you earn from a client across all contracts.
  • 10% if your earnings from a client is between $500.01 and $10,000.
  • 5% if your earnings from a client exceed $10,000.

And not only freelancers will be affected with the new service fees. Upwork will also charge clients with 2.75% for processing fees.

Clients from western countries like the US, Australia, Canada, UK and the Eurozone countries are qualified to pay a fix amount of $25 a month. This is an advantage for the client who has large payrolls.