# Low Budget Agreement

Source: https://storiara.com/glossary/low-budget-agreement
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> The Low Budget Theatrical Agreement (LBA) is SAG-AFTRA's contract for films shot entirely in the United States with a total budget under $2,000,000, or $3,000,000 with the Diversity-in-Casting Incentive. Performers earn 65% of Basic Agreement rates, $834 a day or $2,896 a week from July 1, 2026, and the first 30 background actors per day in a covered zone are hired under union terms.

## Background is the line people underestimate

The LBA is the first tier where background actors in covered zones have to be hired under union terms, up to the first 30 per day. A 22-day shoot in Los Angeles that averages 25 background actors a day, all within the zone, falls entirely under that limit:

| Line | Math | Amount |
|---|---|---|
| Background days | 22 x 25 = 550 | |
| Wages at $231 | 550 x $231 | $127,050.00 |
| P&H at 21.5% | $127,050 x 0.215 | $27,315.75 |
| **Total before overtime, adjustments, payroll taxes** | | **$154,365.75** |

On the Moderate Low Budget agreement without the background incentive, those same people could be non-union at whatever the local market pays. Wardrobe, smoke, and other adjustments are added per person per day on top of the base. The [extras casting director](https://storiara.com/roles/extras-casting-director) will build the count from the breakdown, and the [background actors](https://storiara.com/glossary/background-actors) entry covers the paperwork.

## Principal cast rates

| Performer type | Day | Week |
|---|---|---|
| Performer | $834 | $2,896 |
| Stunt performer | $834 | $3,110 |
| Dancer, solo or duo | $834 | $2,685 |
| Singer, solo or duo | $904 | $2,896 |

All effective July 1, 2026. Stunt coordinators track the Basic Agreement's Schedule K rates, $1,283 a day for a coordinator employed below the flat deal minimum. Weekly rates cover a five-day studio week; a six-day overnight location week adds four hours of overtime at straight time automatically.

## What else changes at this tier

Taft-Hartley applies, so non-members hired as principals are reported under union rules. Residuals are paid as a percentage of the distributor's gross receipts by market once the film is released, which means distribution deals need to account for them. The diversity incentive raises the cap from $2,000,000 to $3,000,000, which is a large jump compared with the lower tiers.

## Budget checks before you apply

1. Add every deferral and fee to confirm you're under $2,000,000 total production cost.
2. Price background by zone from the [day out of days](https://storiara.com/glossary/day-out-of-days) and the breakdown.
3. Apply 22% P&H to performers and 21.5% to background.
4. Budget [meal penalties](https://storiara.com/glossary/meal-penalty) and overtime; the LBA pays them per the Basic Agreement.

For how this tier compares with the others, see [SAG-AFTRA tiers](https://storiara.com/glossary/sag-aftra-tiers).

## Frequently asked questions

### What is the SAG-AFTRA low budget day rate for 2026?

$834 per day and $2,896 per week for performers from July 1, 2026, rising to $859 and $2,984 on July 1, 2027.

### Does the SAG-AFTRA Low Budget Agreement cover background actors?

Yes, for the first 30 background actors per day in a covered background zone, according to SAGindie. They are paid at the Basic Agreement Schedule X-I and X-II rates ($231 a day from July 1, 2026).

### What's the pension and health rate on the SAG-AFTRA Low Budget Agreement?

22% of gross for performers and 21.5% for background actors, effective September 6, 2026, according to the 2026 rate sheet.

## Sources

- [SAG-AFTRA 2026 Low Budget Theatrical Agreement Rate Sheet](https://www.sagaftra.org/sites/default/files/LBA%20Rate%20Sheet%2026-30.pdf)
- [SAG-AFTRA Production Center: Low Budget Theatrical, getting started](https://www.sagaftra.org/production-center/contract/814/getting-started)
- [SAG-AFTRA: Theatrical Low Budget summary](https://www.sagaftra.org/industry-resources/rates-agreements/theatrical-low-budget)