Research Summary: One of the biggest trends set by the COVID-19 Pandemic has been the explosion of freelancers. Many employees realized they prefer the freedom afforded to them by remote work, and just as many companies have seen the benefits that come with hiring freelancers.
So, if you’re interested in becoming a freelancer yourself, it’s important to know about average hourly rates and other important statistics. After all, there is a lot of variety in the industry.
To find out more, we’ve gathered all of the essential trends and statistics about US freelancer rates, and according to our extensive research:
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The average hourly freelancer rate is $21 per hour.
That’s roughly 52% less than the average US wage of $32.64 per hour in 2022. This is a number that could be considered skewed, as 51% of Americans actually make less than $20 per hour.
However, it’s also important to note that freelancer rates are incredibly variable. With an average range between $14.90 and $57.21 per hour, the median freelancer rate is actually $33.15.
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Globally, 70% of freelancers make $20 or less per hour.
Average global freelancer rates are actually very low, with the largest bracket being the 24% who make only $6-$10 per hour. By contrast, only 4% of global freelancers make $50-$100 per hour.
Average hourly rate Share of global freelancers $5 or less 16% $6-$10 24% $11-$15 17% $16-$20 13% $21-$25 9% $26-$30 7% $31-$50 10% $50-$100 4% -
Project Management is the highest-paying field for freelancers, with the average hourly rate at $28.
This is then followed by Multimedia Production, Sales, and Programming, which all have average hourly rates of $25. On the other end of the spectrum, Content Writing is an incredibly popular freelancing field that only pays an average of $15 per hour.
Field Average hourly rate Project Management $28 Multimedia Production $25 Sales $25 Programming $25 Marketing $23 Finance $23 IT $23 Translation $20 Web & Graphic Design $19 Content Writing $15 -
The Legal industry has the highest average hourly rates for freelancers, at $28.
This is then followed by IT & Programming and Engineering & Manufacturing, which both pay an average of $21 per hour. While conversely, Administrations & Customer Support pay the least on average at $11.
Industry Average hourly rate Legal $28 IT & Programming $21 Engineering & Manufacturing $21 Multimedia & Design $20 Finance & Management $19 Marketing & Sales $18 Translation & Writing $16 Administrations & Customer Support $11 -
Freelancer rates for those with a Master’s degree earn 16.7% more than those with a Bachelor’s Degree.
The average hourly rate for a freelancer with a Master’s degree is $21, while the average for those with a Bachelor’s degree is $18. Surprisingly, High School graduates earn slightly more than those with a Bachelor’s degree, at $19 per hour.
Education Level Average hourly rate High School $19 Bachelor’s degree $18 Master’s degree $21 Doctorate $21 -
Freelancing women earn only 69% of a male freelancer’s pay rate.
The average freelancing woman earns $18 per hour, while the average freelancing man earns $21 per hour.
Industry Male average hourly rate Female average hourly rate Legal $29 $26 Engineering & Manufacturing $22 $19 IT & Programming $21 $16 Multimedia & Design $20 $19 Finance & Management $20 $16 Marketing & Sales $18 $15 Translation & Writing $16 $15 Administrations & Customer Support $12 $10
Average Freelancer Rate FAQ
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Do freelancers charge hourly?
Many freelancers charge hourly, but not all of them do. For example, some freelancers charge per project, per day, or based on other metrics like word count, the number of projects completed, and more. However, many freelancers do choose to charge hourly to ensure fair payment.
This is because when the scope of the project isn’t clear, or if the freelancer isn’t familiar with the client’s or employer’s typical process, an hourly rate will prevent them from getting paid less than the amount of work put in.
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How do I set a fair freelance rate?
You can set a fair freelance rate by determining the desired salary, then dividing that number by 52 weeks and 40 hours. For example, if the average annual salary in the field is $60,000 per year, this would first be divided by 52 for around $1,154 per week. Then, $1,154 per week would be divided by 40 hours a week to $28.85 per hour.
This is typically the easiest way to determine a fair rate, but other factors you should consider include:
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How much money can I realistically allocate to employment?
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How will this new expense affect profit margins?
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What do other freelancers charge for similar services?
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How much money would the freelancer make as a full-time employee?
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What other expenses do I have as a business owner?
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Are the freelancer’s skills in high demand?
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How much value is the freelancer bringing to the business?
All of these factors combined can help you determine the fairest rate for your business and the prospective freelancer.
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Do freelancers need to be on the payroll?
No, freelancers do not need to be on the payroll. This is because freelancers are independent contractors, not traditional employees. Typical payroll taxes include Social Security and Medicare taxes, which employees are entitled to.
Freelancers are not entitled to these benefits and therefore are only required to pay a self-employment tax
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Do employers pay taxes on freelancers?
No, employers don’t have to pay most taxes on freelancers. Freelancers are considered independent contractors (aka. A business), so employers don’t have to pay unemployment tax or Federal Insurance Contribution Act (FICA) taxes for them. Employers also aren’t required to withhold taxes from their compensation.
This is why freelancers have to pay upcome tax season rather than receive a tax return. As of 2022, freelancers are responsible for paying the self-employment tax of 15.3%.
Conclusion
With an average hourly rate of $21, many freelancers earn more than the 51% of Americans who make less than $20 per hour. However, this average is also highly variable.
Those in high-earning industries and fields like the legal industry and project management can have an average salary of up to $28 per hour, while content writers and customer service representatives see average salaries below $15 per hour. And this is also true for women, who only earn 69% of what their male freelancing counterparts do.
Ultimately though, freelancing is a highly independent, average to the well-paying line of work that has many pros and cons for employers and employees.
References
- Statistics
- Employee Retention Statistics
- Happy Employees Are More Productive
- Workplace Distraction Statistics
- Average Freelancer Rates
- Average Working Hours
- Offboarding Statistics
- Employee Productivity Statistics
- Workplace Microagression Statistics
- Employee Monitoring Statistics
- Employee Training And Development Statistics
- Lead Generation Statistics