Moderate Low Budget Agreement

Charles HirschhornBy Charles HirschhornSeptember 14, 2026

Definition

The Moderate Low Budget Project Agreement (MPA) is SAG-AFTRA's contract for independent films shot entirely in the United States with a total budget under $700,000. Performers are paid 35% of Basic Agreement rates ($449 a day or $1,560 a week from July 1, 2026), and casting incentives can raise the budget cap.

A cast budget on the MPA

A 20-day feature with two leads on weekly contracts for four weeks, four supporting actors at 6 days each, and 12 day players at 1 day each:

LineMathAmount
Leads, weekly2 x 4 x $1,560$12,480
Supporting, daily4 x 6 x $449$10,776
Day players12 x 1 x $449$5,388
Subtotal$28,644
Pension and health, 22%$28,644 x 0.22$6,301.68
Total before payroll taxes$34,945.68

Look at the supporting actors again. If five of an actor's 6 days fall in one studio week, a weekly contract at $1,560 for that week beats 5 x $449 = $2,245. Run the day out of days before choosing contract types; see weekly rate for the break-even.

The incentives

The MPA has two ways to raise the $700,000 ceiling. The Diversity-in-Casting Incentive lifts it to $950,000 if the cast meets the agreement's protected-group requirements. The Background Actor Incentive adds $112,000 to the maximum if the producer covers an average of three SAG-AFTRA background actors per day in a background actor zone. Background actors covered under the incentive are paid at the Basic Agreement's Schedule X-I and X-II rates, $231 a day from July 1, 2026.

Working conditions

  • Taft-Hartley applies, so hiring a non-member triggers the union's reporting rules. See Taft-Hartley.
  • Overtime for day and weekly performers is time and a half through the 12th hour and double time from the 13th, in tenths of an hour.
  • With written consent and at least 36 consecutive hours off in each seven days, a performer can work a sixth day without a premium, limited to eight straight-time hours.
  • Weekly performers are employed in units of at least one week; extra days in a final partial week are prorated at one-fifth of the weekly rate.
  • Total production cost includes deferred compensation.

Where people get caught

The MPA sits between two much cheaper and much more expensive tiers. Going from $449 to the Low Budget agreement's $834 nearly doubles the day rate, so a budget that drifts over $700,000 in prep without an incentive is an expensive problem. Keep the production budget you submit to SAG-AFTRA and the one you track in the cost report reconciled. The SAG-AFTRA tiers table compares all three agreements.

Frequently asked questions

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

$449 per day and $1,560 per week for performers from July 1, 2026. Pension and health adds 22% for performers and 21.5% for background actors, effective September 6, 2026.

What is the budget limit for the Moderate Low Budget agreement?

Under $700,000 for films shot entirely in the US. The Diversity-in-Casting Incentive raises the maximum to $950,000, and the Background Actor Incentive raises it by $112,000.

Do I have to hire SAG background actors on a moderate low budget film?

Not unless you use the Background Actor Incentive. If you do, you must cover an average of three background actors per day in a background actor zone.

Sources

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Charles Hirschhorn

Charles Hirschhorn

Financial Lead, Storiara

Financial strategist with deep experience in media and technology. Ensures Storiara's financial health while supporting our mission to transform film production.