# Moderate Low Budget Agreement

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

> 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:

| Line | Math | Amount |
|---|---|---|
| Leads, weekly | 2 x 4 x $1,560 | $12,480 |
| Supporting, daily | 4 x 6 x $449 | $10,776 |
| Day players | 12 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](https://storiara.com/glossary/day-out-of-days) before choosing contract types; see [weekly rate](https://storiara.com/glossary/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](https://storiara.com/glossary/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](https://storiara.com/glossary/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](https://storiara.com/glossary/production-budget) you submit to SAG-AFTRA and the one you track in the [cost report](https://storiara.com/glossary/cost-report) reconciled. The [SAG-AFTRA tiers](https://storiara.com/glossary/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

- [SAG-AFTRA 2026 Moderate Low Budget Project Agreement Rate Sheet](https://www.sagaftra.org/sites/default/files/MPA%20Rate%20Sheet%2026-30.pdf)
- [SAG-AFTRA Production Center: Moderate Low Budget Project, getting started](https://www.sagaftra.org/production-center/contract/815/getting-started)
- [SAG-AFTRA Moderate Low Budget Project Agreement (sample, rev. 3.28.23)](https://www.sagaftra.org/sites/default/files/Moderate%20Low%20Budget%20Project%20Agreement%20(MPA)%20Rev.%202.21.23%20SAMPLE.pdf)
- [SAG-AFTRA: Moderate Low Budget summary](https://www.sagaftra.org/industry-resources/rates-agreements/moderate-low-budget)