Where does your $1,000 actually go? Every fee from Upwork to your bank
You finish a $1,000 job on Upwork. By the time it reaches your bank in Pakistan, you'll typically have about Rs 242,000 of a possible Rs 280,000. Here's where the rest goes, and how to keep more of it.
1. The platform fee
Upwork now sets its freelancer service fee per contract, anywhere from 0% to 15%; around 10% is common. Fiverr takes 20% of every order. On a direct client, there's no platform fee at all.
On our $1,000 Upwork job at 10%, $900 is left.
2. Getting it out
Upwork offers three practical routes for Pakistan:
- Direct to Local Bank (PKR): $0.99 per withdrawal, minimum $5, to a personal account in your own name. Usually arrives within four working days.
- Payoneer: a small Upwork transfer fee, then Payoneer's charge to withdraw to a Pakistani bank, widely reported at about 3% including conversion in 2026. Payoneer also charges a $29.95 annual fee if you receive less than $6,000 in 12 months.
- Direct to a US bank: $2.99 since 1 September 2026 for non-US addresses. Only useful if you hold a US account.
PayPal is still not available to residents of Pakistan, and Wise does not open accounts for Pakistani residents.
3. The exchange rate
This is the cost most people miss. Neither your bank nor Payoneer converts at the interbank rate you see on Google. Banks typically give around 1% less; Payoneer's 3% includes its conversion margin. On $900, a 1% difference is about Rs 2,500.
4. The tax your bank deducts
When dollars for your services arrive and are converted, the bank deducts income tax under section 154A of the Income Tax Ordinance:
- 0.25% if you're registered with PSEB (this rate now runs to tax year 2029)
- 1% if you're not
If you file your return, this deduction is your final tax on that income. More on how this works.
5. The full picture
Using Rs 280 to the dollar as an example rate:
| Step | Via Payoneer, not PSEB | Upwork direct to bank, PSEB |
|---|---|---|
| Earned | $1,000 | $1,000 |
| Upwork fee (10%) | −$100 | −$100 |
| Withdrawal | −$27 (about 3%) | −$0.99 |
| Converted to PKR | Rs 244,440 | Rs 249,206 (after 1% bank spread) |
| Tax (154A) | −Rs 2,444 (1%) | −Rs 623 (0.25%) |
| In your account | Rs 241,996 | Rs 248,583 |
Same job, about Rs 6,600 difference. Over a year of $1,000 jobs, that's close to Rs 80,000.
Keep the paperwork
Each time foreign money is converted for services, ask your bank for the Proceeds Realisation Certificate (PRC), showing purpose code 9186 for IT and IT-enabled services. It's your proof that the income was export income taxed at the right rate. Banks often charge for old PRCs, so collect them as you go.
General information, not tax advice. Rates are for tax year 2027 (1 July 2026 to 30 June 2027) from FBR's withholding rate card and Circular 2 of 2026-27, unless stated.