New Hourly Payment System (What You Should Know Now)

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In a few weeks time, you will have a better experience in releasing and receiving payment as we will roll out the new hourly payment system. This post will present the updates happening around the release, the differences between the old and the new payment systems, and the stuff that will remain unchanged.

Before we introduce the changes, remember the two main parameters of Hourly projects:

1. The hourly rate at which the freelancer works
2. The weekly limit (the maximum number of hours the freelancer can work in a week)

Let’s compare what we have in the current hourly payment system and what you can expect in the new one that’s coming out soon.

freelancer new hourly payment system


OLD SYSTEM: On awarding the project, we require you to pay the maximum amount the freelancer could earn in the week (weekly limit x hourly rate) by creating a milestone.
NEW SYSTEM: On awarding the project, you won’t be forced to pay any amount. However, to ensure security for the freelancer, we’ll require you to be payment verified.

In the current system, for example, if the project has a weekly limit of 10 hours and the freelancer’s hourly rate is $20, you will create a $200 milestone on the award. In the new system, you will not be required to pay any amount upfront when you award the project to your chosen freelancer.

But to show your serious intent of working together with the freelancer, you can still create an optional milestone, which is something we also recommend. The milestone amount will be allocated to pay your hourly invoices, or you can release it manually.

New Setup Payment Modal.png

Since you won’t be creating a milestone early on this stage, we need to guarantee your freelancer that you will pay the total hours worked for the week by adding a verified payment method. If you have payment verification concerns, read this post.

OLD SYSTEM: On Monday after you awarded the project, we will send you an invoice for the number of hours the freelancer worked in the past 7 days.

NEW SYSTEM: On Monday after you awarded the project, we will send you an invoice for the freelancer’s total number of hours worked in the past 7 days. On your behalf, we will also create a milestone for the exact amount required.

On behalf of the freelancer, we’ll invoice you for the hours the freelancer worked from the  Monday you awarded the project until the current time, at midnight in your time zone. At the same time, on your behalf, we’ll create the milestone from your verified payment source.

Invoice generated on Monday.png

OLD SYSTEM: On Wednesday, we’ll pay the freelancer by releasing the pending milestone on your project.

NEW SYSTEM: On Wednesday, we’ll automatically release the milestone which you’ve created on Monday.

We’ll release the payment to the freelancer automatically at midnight in your time zone. Manually releasing the milestone will automatically mark the invoice as done. And manually marking the invoice as done will automatically release the milestone.

Invoice is Paid.png


OLD SYSTEM: You will track your time for the week.

NEW SYSTEM: Still the same; you need to track your time so you will be paid for every hour you’ve worked.

You have the option to automatically track your worked hours by using the Desktop App or through manual time tracking.

OLD SYSTEM: You will be charged fees on milestone release.

NEW SYSTEM: Nothing’s changed, you will still be charged fees for every milestone release.

Fees for all milestone releases are the only fees you will be charged with. But note that when you accept an Hourly project, you will not be charged any fee.


It would be a relief for employers to not be required to dish out any amount before the freelancer has done any work. Since they will only create a milestone after receiving the invoice, there won’t be many charges and splitting milestones. They will only deposit payment into the system once each Monday, after the freelancer tracked hours for the previous week.

In between Monday and Wednesday, both the employer and the freelancer can dispute the milestone if they want.

For employers transitioning from the old system to the new one:

Do you still have milestones generated by the old system? These will be used to create the milestone every Monday to pay your freelancer’s tracked hours in the previous week. We will use these first before charging your payment source again.

We’ll keep you posted once the new hourly payment system goes live. In the meantime, let us know your thoughts about this release in the comment section below.


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Postado 25 julho, 2017

flDyan Equipe

Junior Product Marketing Manager at Freelancer. Outside of work, I'm into wedding coordination, entrepreneurship, beach trips, badminton, reading novels, and binge-watching TV series on Netflix.

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