Ultra Low Budget Agreement

Charles HirschhornBy Charles HirschhornSeptember 14, 2026

Definition

The Ultra Low Budget Project Agreement (UPA) is SAG-AFTRA's contract for independent films shot entirely in the United States with a total budget of no more than $300,000, including deferred pay. It allows day performers only, at 20% of the Basic Agreement day rate ($257 from July 1, 2026), and lets producers cast union and non-union actors.

Budgeting cast on the UPA

A 15-day ultra low budget feature with three leads working every day and eight day players working two days each has 3 x 15 + 8 x 2 = 61 performer days.

LineMathAmount
Performer days at $25761 x $257$15,677.00
Pension and health, 22%$15,677 x 0.22$3,448.94
Cast before payroll taxes and overtime$19,125.94

Overtime is extra. Under the UPA, a day performer's overtime through the 12th hour is paid at time and a half, in tenth-of-an-hour units, and from the 13th hour at double time. At $257 for an 8-hour day, the hourly rate is $32.125, so one hour of time and a half is about $48.19. Budget a few hours per performer per week rather than zero.

The $300,000 includes more than cash

The cap applies to the total production cost: all above-the-line and below-the-line costs, including deferred compensation. A film with $240,000 in cash and $75,000 in deferred pay is at $315,000 and doesn't qualify. If SAG-AFTRA later decides a project doesn't qualify, the agreement lets it reclassify the film to the appropriate agreement, and the producer owes the difference in compensation. See SAG-AFTRA tiers for the next agreement up.

Rules that affect the schedule

  • Day performers only. No weekly contracts.
  • Consecutive employment is waived with each performer's written consent (except on overnight locations), and performers can take other work during the shoot. Producers waive exclusivity in return.
  • A performer can't be required to hold a day unless they're paid for it, which matters when you build the day out of days.
  • Payments go through an entertainment payroll house, so budget a payroll company fee.

Release limits

The base pay covers limited exhibition: film festivals, free-to-consumer new media for 13 consecutive weeks, a one-week theatrical run for Academy consideration, industry and financier screenings, and limited public access TV. Selling the film to a streamer or cable outlet is permitted, but it triggers residuals, and the producer has to notify SAG-AFTRA before that release.

Applying

SAG-AFTRA recommends applying four to six weeks before the first day of work. It asks for company formation documents, the script, the day out of days, a line item budget, and a pre-production cast list, and it may require a security deposit. The how to become a SAG-AFTRA signatory post walks through the paperwork.

Frequently asked questions

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

$257 per day for performers from July 1, 2026, rising to $264 on July 1, 2027. Pension and health is an additional 22% of gross for performers, effective September 6, 2026.

Can I use non-union actors on a SAG ultra low budget film?

Yes. The UPA lets producers work with both professional and non-professional performers, though the agreement covers only the professional performers. Taft-Hartley doesn't apply.

Are background actors covered under the Ultra Low Budget agreement?

No. Background actors and extras are not covered under the UPA.

Where can I release an ultra low budget film?

The base compensation covers limited exhibition, such as festivals, free new media platforms for 13 consecutive weeks, and a one-week Academy qualifying run. A release in other markets is allowed but triggers residuals under the agreement.

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.