How do payments work on Upwork? UK guide for both freelancers and clients

Upwork connects people and projects around the world, but handling payments can get confusing fast. If you use Upwork, you want your money to move smoothly, whether you’re sending or receiving it.

This guide explains how UK users can manage payments on Upwork, choose methods that suit their needs, and cut down on extra charges. You’ll also learn how Wise makes it easier to keep more of your money when moving funds internationally.

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How do payments work on Upwork?

Upwork processes all payments on its platform. Clients can only pay through approved payment methods, and Upwork holds the money securely until the work is completed and approved. Clients outside the platform do not make direct payments to freelancers. After a contract milestone has been achieved, the freelancer receives the money in their Upwork account. They will then be able to withdraw to a preferred payment method. This setup ensures security and compliance for both parties.

Getting paid on Upwork as a contractor

Getting paid on Upwork is clear once you know what to do. Follow these steps to receive your earnings:

Step 1: Set up your withdrawal method

Log into your Upwork account, navigate to settings and click "Get paid". Select the withdrawal option you want to use and click on the “Add a method” button.¹ UK freelancers have the option of using local bank transfer, PayPal, Payoneer, or Wise. Fill in your payment information. Upwork will then confirm your withdrawal method.

Step 2: Complete your project and submit work

Complete the work you have agreed on and deliver it to your client via Upwork. With fixed-price contracts, deliver your milestone work by clicking the "Submit Work for Payment" button.² For hourly contracts, you can track your time using the Work Diary on Upwork.³

Step 3: Wait for client approval

Once you deliver your work, the client will review it. In fixed-price jobs, they have 14 days to accept or make changes.² In hourly jobs, the clients have up until Friday of the billing week to review your work.⁴ If the client doesn’t take action, Upwork releases the funds automatically..

Step 4: Make sure your funds are available

As soon as payment is approved or released, Upwork places your earnings in a five-day security hold.⁵ Once this time is over, you can withdraw your money. Be sure to check the Upwork payment terms for each contract, as processing times and payment release schedules can vary.

Step 5: Withdraw your earnings

Once your funds are available, visit your settings or financial overview dashboard and select “Get paid Now”.⁶ Select the amount to withdraw and your verified method. Choose to withdraw manually anytime or set up automatic withdrawals on a schedule (weekly, bimonthly, monthly or quarterly).⁷

Step 6: Confirm receipt

Check your bank or payment service (like Wise or PayPal) account to confirm receipt. The processing time for each withdrawal method varies, so be sure to check Upwork's timelines in case of delays.

Still lost? Check out our YouTube video explaining the step-by-step process and why Wise might be a better payment solution for Upwork withdrawls.

Making payments on Upwork as a client

When you hire freelancers, you may be paying someone on the other side of the world or down the street. Getting payments to them quickly and securely is important. You can fund contracts using any approved Upwork payment methods listed in your account. The following are the steps to pay your contractors:

Step 1: Add and verify a payment method

Before you can hire or fund a contract, you need to have a verified payment method. To add and verify, go to your Upwork account settings. In the “Billing Methods” section, add the payment method you prefer.⁸ Upwork accepts credit cards, debit cards, PayPal, bank transfers, and Wise.

When it comes to paying freelancers abroad, Wise is a great choice because of its low-cost and fast transfers. Enter your billing information and follow the on-screen steps to verify your account. You can also add multiple payment methods, which allows you to split payments when necessary.

Step 2: Fund the contract or milestone

You have to fund your contract in advance when you hire a freelancer. For fixed-price contracts, you’ll fund each milestone up front with a minimum of 5 USD.⁹ For hourly contracts, you just need to have an active payment method. Upwork will bill you weekly for the number of hours worked, depending on the time that the freelancer has recorded.

Step 3: Approve and release payment

When a freelancer submits work on a fixed-price contract, review it and approve the milestone if everything meets your requirements. Once you approve the milestone, Upwork releases the payment from escrow. You have a 14-day window to review for fixed-price contracts.¹⁰ For hourly projects, you’ll have a five-day review period after the weekly billing cycle to check timesheets before the payment goes through.⁴

Step 4: Track and manage payments

Your Upwork account has all your payments and invoices organised. You can download receipts, track budgets, and change payment methods when necessary.¹¹ This simplifies record-keeping, especially when dealing with contractors in other countries.

Upwork payment methods

When it comes to paying or getting paid on Upwork, below are the options to consider: ¹² ¹³

• Credit or debit card: you can use Visa, Mastercard, and American Express to send and receive payments.
• PayPal: both clients and freelancers can use PayPal to send or withdraw funds. Fees and conversion rates apply.
• Payoneer: available for freelancers to receive payments and for clients outside India and the US.
• Direct to local bank account: withdrawals can go straight to a local bank for 0.99 USD, usually within one working day.
• Wire transfer: for large payments, you can wire funds directly to your UK bank account, though higher fees apply and vary depending on your bank.
• Wise: Wise enables you to receive your Upwork payments in 40+ currencies and enjoy mid-market exchange rates and low fees.

Subscription payments on Upwork

Upwork has a subscription plan, Freelancer Plus, which is available to freelancers interested in having access to more advanced tools and greater visibility. While basic membership is free, upgraded membership gives access to more features that will assist freelancers in expanding their business. Here’s the breakdown for contractors/freelancers:

Plan	Price¹⁴	Features¹⁴
Basic Membership	Free	10 free Connects/month, standard payment protection, limited Uma AI, access to Talent Marketplace, 5% service fee with new clients via Direct Contracts
Freelancer Plus	$19.9/month	100 Connects/month, full Uma AI access, job alerts, proposal insights, profile custom URL, private earnings, 0% service fee with new clients via Direct Contracts, keep profile active, profile customisation

The Freelancer Plus plan does not lower standard Upwork service fees on general projects. But you can save more if you regularly bring outside clients with the 0% service fee on new clients referred to Upwork through Direct Contracts.

Additionally, Upwork does not have monthly or annual plans for clients. Rather, clients pick a plan (Marketplace, Business Plus, or Enterprise) that dictates their service fees and features. These plans have no monthly subscription fees, and we’ll discuss them shortly.

Upwork payment fees

Both clients and contractors pay fees on Upwork. The total cost will depend on the services, location of both parties, and payment method. Also, international payments or currency conversions might attract a higher fee, so confirm before making or withdrawing payments.

Payment fees as a contractor

• Upwork service fee: freelancers on Upwork pay a service fee of 0 to 15% on all earnings, whether hourly, fixed-price, or Project Catalog.¹⁵ The rate is contract-specific and clearly indicated in your billing reports. Some types of contracts, including Upwork Payroll, Any Hire, Direct Contracts, and Enterprise, are exempt or have other fee arrangements.

• Withdrawal fees¹⁶:

  • Withdrawing to a local bank outside the US: $0.99 per transfer.
  • Instant Pay: 2 USD per withdrawal.
  • US dollar wire transfer: 50 USD per transfer.
  • PayPal and Payoneer: may have their own additional fees.
  • Wise: can help lower costs for currency conversion and cross-border payments, though Upwork’s withdrawal fee still applies.

• Currency conversion: if you receive payment in a different currency, Upwork’s payment partners may charge a conversion fee. Wise offers mid-market exchange rate and can help you keep more of your earnings compared to other options.

VAT may apply to Upwork service fees, membership fees, and Connects depending on your location. UK users pay 20% VAT unless they provide a valid VAT ID.¹⁷

Payment fees as a client

When you hire freelancers on Upwork, there are some fees to consider. The amount you pay will depend on your plan, the kind of contract, and how you manage your payments:

• Service fee: clients pay a service fee of 5% for every payment made to freelancers under the Marketplace plan. For Business Plus, the standard rate is 10%. Fees are custom for Enterprise plans.¹⁸
• Contract initiation fee: each new contract on the Marketplace or Project Catalog comes with a one-time initiation fee. This fee ranges from $0.99 to $14.99 USD, depending on contract size, and is charged with your first payment.¹⁹
• Additional usage fees: featured job posts and certain types of payment conversions may involve extra charges. You can also split payments between different billing methods if needed.

Tips for managing payments on Upwork

Managing payments on Upwork can make a big difference in how much you spend or receive. Here are some tips to manage payments on Upwork:

• Know your fees: before starting a project, review all Upwork payment charges and withdrawal fees linked to your payment method. This helps you avoid surprises when your payout arrives.
• Price smartly: for freelancers, set your rates to cover both your earnings and every platform deduction. This way, your take-home pay is exactly what you expect after all fees.
• Use Upwork’s payment features: you can use it to automate payments, split billing, or schedule withdrawals to keep your cash flow predictable. These built-in tools can help you stay organised and on track.
• Watch currency conversions: if you work with clients outside the UK, check live exchange rates and be wary of hidden charges. Even small changes in the rate or added fees can impact what you receive.
• Use Wise for international transfers: Wise lets you send and receive payments in 40+ currencies using the mid-market exchange rate. Using Wise helps clients and freelancers avoid unnecessary conversion costs and lower Upwork's processing fees.
• Track and record payments: Download your transaction reports and save them. With good records, you can easily keep track of your finances and handle taxes.

Reduce Upwork fees with Wise Business

Whether you are a freelancer earning money on Upwork or a client using the platform for business services, you aren't able to avoid USD fees. So, having a Wise Business multi-currency account and card can help minimise your costs.

With Wise Business, you not only get access to 40+ currencies but can also use it in 150+ countries, giving you all the flexibility you need to keep up with international transactions. If you need to double-check the real-time mid-market exchange rate, you can also use our currency converter. Saving on unnecessary costs and making your monthly fees more transparent is easy with this smart solution.

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FAQs

How can I handle a payment dispute?

If a payment issue comes up, Upwork has a built-in dispute process. You can open a dispute on a fixed-price contract if you disagree with the submitted work. For hourly projects, you have until Friday to review the work diary and flag any issues.⁴ If you can’t settle things directly, Upwork’s team will step in to review the evidence.

Can I change my payment method after I’ve started a contract?

Yes, you can change or add new payment and withdrawal methods any time in your Upwork account settings. Upwork uses the existing payment method for payments already in process, but future payments will use the updated method.

Can I hire multiple freelancers and pay them all at once?

Yes, you can hire and pay multiple freelancers at once on Upwork. However, each contract and milestone is treated individually. You’ll have to fund them separately.

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Sources used:

1. Manage how you get paid – Upwork
2. Get paid for fixed-price contracts – Upwork
3. Use your Upwork diary – Upwork
4. Get paid for hourly contracts – Upwork
5. Weekly billing cycle – Upwork
6. How do I withdraw my earnings – Upwork
7. Automatic payment schedule – Upwork
8. Add a billing method – Upwork
9. Milestones for fixed-price jobs – Upwork
10. Review and pay for fixed-price contracts and milestones – Upwork
11. View invoices and transactions – Upwork
12. Payment options – Upwork
13. How to pay freelancers – Upwork
14. Freelancer Plus – Upwork
15. Freelancer Service Fee – Upwork
16. Payments and fees – Upwork
17. UK VAT or freelancers – Upwork
18. Upwork fees for clients – Upwork

Sources last checked: 11-Aug-2025