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What are Milestone Payments?

Freelancer.com offers a special feature called Milestone Payments to ensure that payments to projects are made securely within the site. Milestone Payments can be created by the employer for their awarded freelancer. This shows the employer’s willingness to pay the freelancer which, in turn, encourages the freelancer to do the job well.

Before they work on projects, freelancers can request to have a Milestone Payment created for them as assurance of payment. It is the employer who will decide on whether to create the requested Milestone Payment or not.

Once a Milestone Payment is created (funded), the money will not be transferred to the freelancer just yet. It will remain pending until the employer releases it. Employers are advised to only release the Milestone Payment if they are completely satisfied with the delivered work and all deliverables have been submitted and up-to-standard. When all tasks are satisfactory and the employer releases the Milestone Payment, it will be transferred to the freelancer's account balance on the site.

In cases wherein a pending Milestone Payment needs to be returned (created accidentally or duplicated), the freelancer can cancel it for the funds to be returned to the employer's account balance.


Note that only the employer can create a Milestone Payment and make the release. Conversely, only the freelancer can cancel and return the Milestone Payment.

For more details about Milestone Payments, please check here:

How to Create a Milestone Payment

How to Release a Milestone Payment

How to Cancel a Milestone Payment


Aside from facilitating payments on the site, the Milestone Payment System also:

  • Offers protection for both users. Employers are recommended to release payments only if they’re happy with the submitted work while freelancers are assured in knowing that their payment is available and ready to be released.

  • Allows the use of our Dispute Resolution Service. If something goes wrong with a project, both the employer and freelancer can have access to our Dispute Resolution Service. This is, however, only available for projects with pending Milestone Payments.

  • Helps build freelancers' reputation. Both users will be able to leave feedback and ratings for each other if the project is completed and paid with Milestone Payments. Earning more positive reviews from completed projects will give freelancers more chances of being hired for other projects.

  • Provides better work results for employers. Setting up a Milestone Payment encourages freelancers to be productive by making them confident that they are going to be well-compensated for their hard work. Employers will then find more agreeable and committed freelancers, which means they can also get better results out of their projects.

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