SAG-AFTRA Union Tiers: Complete Guide for Producers

Hiring SAG-AFTRA talent is one of the first major financial commitments a producer makes. It shapes your budget, your schedule, your insurance requirements, and your obligations long after the shoot wraps.

Most guides to SAG-AFTRA rates give you a table of minimum day rates and weekly scales and stop there. That is roughly equivalent to evaluating a film tax incentive based on its headline percentage. It tells you something, but it leaves out the factors that actually determine what you will spend.

The minimum day rate is just the starting line. On top of it sit pension and health contributions at 21%, overtime that compounds after eight hours, meal penalties that stack every thirty minutes you miss a break, turnaround violations that trigger a full extra day of pay, a security deposit that ties up cash weeks before you roll, and residual obligations that follow the project for years after delivery. A producer who budgets only the scale rate and discovers these costs during production is a producer who raids contingency.

This guide covers the full picture: which agreement your production falls under, what the rates actually are, what the hidden costs look like in practice, how the signatory process works, and the most common mistakes that cost indie producers money they did not plan to spend.

Which SAG-AFTRA Agreement Do You Need?

Before you look at a single rate, you need to know which SAG-AFTRA agreement applies to your project. The agreement determines your minimum pay scales, your pension and health contribution rates, whether you can mix union and non-union performers, and what distribution restrictions apply.

The union organizes its agreements primarily by two factors: what you are making (feature film, television, commercial, new media) and how much you are spending. Get this wrong, and you will either overpay or, worse, sign the wrong agreement and face compliance issues later.

Here is how the theatrical agreements break down by budget:

• Basic Theatrical Agreement. Budgets above $2 million. This is the standard agreement for studio features and larger independent films. It carries the highest minimum rates but the fewest restrictions on distribution.
• Low Budget Agreement (LBA). Budgets between $700,000 and $2 million. The workhorse agreement for serious indie features. Rates are set at 65% of basic scale. Filming must take place entirely within the United States. The LBA allows producers to hire both union and non-union performers under the same terms via Taft-Hartley.
• Modified Low Budget Agreement (MLB). Budgets between $300,000 and $700,000. Rates drop to 35% of basic scale. The project must have an initial theatrical release to qualify. If you are going straight to streaming, you may fall under New Media instead.
• Ultra Low Budget Agreement (ULB). Budgets of $300,000 or less. Day rate only (no weekly scale) at 20% of basic. Designed for first-time and emerging filmmakers working with minimal resources.
• Short Project Agreement. Budgets under $50,000, maximum 40 minutes runtime. Day rates are negotiable with a preferred minimum of $249. Films can be exhibited at festivals, on YouTube or Vimeo, or for Academy Award consideration without triggering additional residual obligations, unless you later distribute through paid channels.
• Student Film Agreement. Budgets under $35,000, maximum 35 minutes, produced to satisfy course requirements at an accredited institution. All rates are negotiable. Requires additional paperwork to verify academic eligibility.

If your project is a series or film intended primarily for streaming or digital platforms with a budget between $50,000 and $1 million, you likely fall under SAG-AFTRA's New Media Agreement, which has its own tiered rate structure. Above $1 million, the project typically defaults to theatrical or television rates.

SAG-AFTRA Theatrical Rates (2025–2026)

These rates are effective from July 1, 2025 through June 30, 2026. Pension and health (P&H) contributions of 21% apply on top of all performer compensation. For background actors, the P&H rate is 20.5%.

The rates below reflect minimum scale: the floor, not the ceiling. Lead actors on even modestly budgeted indie films are frequently paid above scale, and name talent is negotiated entirely separately. But every actor on a SAG project must be paid at least these amounts.

Basic Theatrical Agreement (Over $2M)

• Day Rate: $1,246 per day
• Weekly Rate: $4,326 per week
• P&H Contribution: 21%

What this means in practice: A day player on a basic agreement costs you $1,246 in gross wages plus $261.66 in P&H, for a total of $1,507.66 before overtime, meal penalties, or any negotiated overscale. A weekly player costs $4,326 plus $908.46 in P&H, for $5,234.46 total. And that is before payroll taxes, workers' compensation, and your payroll service fee.

Low Budget Agreement ($700K–$2M)

• Day Rate: $810 per day (65% of basic scale)
• Weekly Rate: $2,812 per week
• P&H Contribution: 21%

Modified Low Budget Agreement ($300K–$700K)

• Day Rate: $436 per day (35% of basic scale)
• Weekly Rate: $1,514 per week
• P&H Contribution: 21%

Ultra Low Budget Agreement ($300K or less)

• Day Rate: $249 per day (20% of basic scale)
• Weekly Rate: None
• P&H Contribution: 21%

Short Project Agreement (Under $50K, max 40 min)

• Day Rate: Negotiable (preferred minimum: $249)
• Weekly Rate: None
• P&H Contribution: 21%

SAG-AFTRA Television Rates (2025–2026)

Television rates are more complex than theatrical because they depend not just on budget but on the number of episodes, episode length, and whether the performer is a day player, guest star, or series regular. Here are the key categories.

Performers in One Episode

• Day Rate: $1,246 per day
• Three-Day Rate: $3,157 per three-day period
• Weekly Rate: $4,326 per week

Major Role Performers (Guest Stars) in One Episode

• Half-hour program: $6,853 per week
• One-hour program: $10,965 per week

Series Regulars (Half-Hour Programs)

• 13 out of 13 episodes: $4,326 per week
• 7–12 episodes: $4,952 per week
• 6 episodes: $5,774 per week

Series Regulars (One-Hour Programs)

• 13 out of 13 episodes: $5,205 per week
• 7–12 episodes: $5,807 per week
• 6 episodes: $6,792 per week

Note that series regular rates increase as the number of contracted episodes decreases. This is because performers with fewer guaranteed episodes receive less total compensation, so the per-week rate rises to partially offset that. Also note that the "Netcode" for network television introduces additional complexity around front-of-book and back-of-book rates for different program types. If you are producing for broadcast network, consult your SAG-AFTRA representative for specific guidance.

SAG-AFTRA New Media Rates (2025–2026)

The New Media Agreement covers content produced primarily for digital distribution: streaming platforms, YouTube, TikTok, Instagram, and similar outlets. It applies to projects with budgets between $50,000 and $1 million. Projects above $1 million default to theatrical or television rates.

Category A ($50K–$300K)

• Day Rate: $249.20 per day (20% of TV scale)
• Weekly Rate: None

Category B ($300K–$700K)

• Day Rate: $436.10 per day
• Weekly Rate: $1,514.10 per week

Category C ($700K–$1M)

• Day Rate: $809.90 per day
• Weekly Rate: $2,811.90 per week

Category D (Over $1M)

Projects exceeding $1 million in budget are categorized under the full theatrical minimum scale rates. The reduced New Media rates no longer apply.

SAG-AFTRA Commercial Rates (2025–2026)

Commercial rates are fundamentally different from theatrical and television rates. Instead of budget-based tiers, commercial compensation depends on where and how often the ad airs. The more airings, the more the performer earns. This creates a variable cost structure that can surprise producers who are used to flat-rate talent deals.

The current commercial agreement took effect April 1, 2025 and runs through March 31, 2026. Standard P&H contribution is 23.5% (reduced to 19.95% for JPC authorizers). For digital-only commercials, the P&H rate jumps to 40%.

Key rate categories include Class A (national broadcast), Wild Spots (local/regional broadcast), Cable (national and local tiers by subscriber count), and All Other North American Linear Use. Each has on-camera and off-camera rates across 4-week, 13-week, and 52-week usage periods. The structure is complex enough that most commercial producers work with a payroll company that specializes in SAG commercial compliance.

For reference, a Class A on-camera session fee starts at $783.10, and a 13-week national cable buy runs $4,100 on-camera. But these are just session fees. Usage fees, holding fees, and residuals compound from there. If you are producing a commercial with SAG talent, budget for the full usage cycle, not just the shoot day.

The Costs That Don't Show Up on the Rate Sheet

This is where most SAG-AFTRA budgets go wrong. The rate sheet tells you the minimum day rate. It does not tell you what you will actually spend. Here are the costs that sit on top of every dollar of performer compensation.

Pension and Health Contributions (21%)

Every dollar you pay a SAG performer in wages, overtime, or penalties triggers an additional 21% contribution to the SAG-AFTRA pension and health fund. This is not optional, not negotiable, and not deferred. It is due with your payroll submission. On a basic agreement day rate of $1,246, that is $261.66 in P&H alone.

Overtime

SAG overtime kicks in after eight hours of work (measured from the performer's call time, not from when they step on set). Hours nine and ten are paid at time-and-a-half. Beyond ten hours, double time applies. Overtime is calculated in one-tenth of an hour (six-minute) increments.

What this looks like on a basic agreement: If a day player works twelve hours, the first eight are covered by the $1,246 day rate (hourly equivalent: $155.75). Hours nine and ten are $233.63 per hour. Hours eleven and twelve are $311.50 per hour. That twelve-hour day costs $2,336.26 in wages before P&H, nearly double the day rate. Add 21% P&H and you are at $2,826.87.

Meal Penalties

SAG requires a meal break within six hours of the performer's call time. Miss that window, and meal penalties begin accruing every thirty minutes: $25 for the first half-hour, $35 for the second, and $50 for every half-hour after that. These penalties are per performer. If five actors miss their meal break by ninety minutes, that is $330 in penalties ($110 per actor times three periods, times five actors).

Meal penalties are one of the most common budget overruns on indie films. They are entirely preventable with disciplined scheduling, but when a shoot runs long and lunch keeps getting pushed, the costs compound fast.

Turnaround Violations

Every SAG performer must receive a minimum of twelve hours of rest between the time they leave set and their call time the following day. Violate this rest period, and you owe the performer an additional full day's pay. On a basic agreement, that is another $1,246 plus P&H, for a scheduling mistake.

Turnaround violations most often happen when a night shoot runs late and the next day's call time was set too early, or when company moves between locations add drive time that was not factored into the turnaround calculation.

Forced Calls

A forced call occurs when a performer is called back to work before their required rest period has ended, but the production compensates at premium rates for the infringed time. The cost depends on how much of the rest period was cut short, but it always involves premium pay, typically time-and-a-half or double-time for the violated hours. Like turnaround violations, forced calls are a scheduling problem that becomes a budget problem.

Payroll Taxes and Workers' Compensation

On top of SAG wages, P&H, overtime, and penalties, you still owe standard payroll taxes (employer-side FICA, federal and state unemployment) and workers' compensation insurance. Depending on your state, this payroll burden adds 22% to 34% on top of gross wages. Combined with the 21% P&H contribution, the fully loaded cost of a SAG performer can be 45% to 55% above the gross day rate.

The Signatory Process: What to Expect

Before you can hire a single SAG actor, your production company must become a SAG-AFTRA signatory. This means you are agreeing to abide by the terms of the applicable collective bargaining agreement, pay at least minimum scale, contribute to the pension and health fund, and comply with working condition requirements.

Here is what the process looks like in practice:

1. Prepare your materials. You need a completed budget (to determine which agreement applies), a finished script (so SAG can assess the number of speaking roles), and your production company formation documents (articles of incorporation, LLC operating agreement, or equivalent).
2. Submit the Signatory Application. As of 2025, SAG-AFTRA launched the Producer Portal, an online platform that streamlines the signatory process. You can upload documents, track your application status, and communicate with your assigned business representative through the portal. Previously this was a paper-heavy process. The portal is a significant improvement.
3. Get assigned a Business Representative. After submission, SAG-AFTRA assigns a business representative to your production, typically within three business days. This person is your primary contact for the duration of production and post. Build a good relationship. They can help you navigate edge cases and avoid compliance issues.
4. Financial review and security deposit. SAG-AFTRA will evaluate your production's financial situation and determine what security deposit or bond is required. This is the step that catches many first-time producers off guard. More on this below.
5. Complete the paperwork. You will receive a packet of documents including deal memos, exhibit G forms (daily time reports for performers), cast lists, and various compliance forms. All must be completed and returned before you can begin working with SAG talent.

SAG-AFTRA recommends starting the signatory process four to six weeks before you plan to work with union actors. In practice, budget six to eight weeks if this is your first time, because the financial review and security deposit arrangement can take longer than expected.

A valuable free resource: SAGindie is funded by the SAG-AFTRA Producers Industry Advancement & Cooperative Fund and exists specifically to help independent producers work with union talent. Their guides, FAQs, and signatory assistance are free and genuinely helpful.

The Security Deposit: Cash You Can't Touch

The security deposit is one of the most frequently underestimated costs in SAG production planning, not because it is an additional expense (it is refundable), but because it ties up cash at exactly the moment you need liquidity most: right before principal photography.

SAG-AFTRA calculates the security deposit at 40% to 100% of estimated performer payroll (including P&H contributions). The exact percentage depends on the production's financial profile. First-time signatories and companies without an established track record typically face higher deposit requirements. In practice, the deposit is usually equal to approximately two weeks of estimated performer wages plus applicable P&H.

This money must be posted before the start of principal photography, typically as a cash deposit or surety bond. It is held by SAG-AFTRA until all of the following conditions are met: all initial compensation has been paid to all performers and background actors, all pension and health contributions have been submitted, all claims on the production have been resolved, and all required production documents have been delivered.

For an indie feature with a $1.2 million budget shooting over four weeks with a cast of eight SAG performers, the security deposit can easily be $30,000 to $60,000 in cash that sits untouched for months after wrap. If you are financing against a tax incentive or a minimum guarantee, this is working capital you cannot deploy elsewhere. Factor it into your cash flow plan from the start, not as an afterthought during prep.

Taft-Hartley: Hiring Non-Union Actors on a Union Project

One of the most common questions independent producers ask is whether they can hire non-union actors on a SAG project. The answer is yes, under specific conditions, through a process called Taft-Hartley.

The Taft-Hartley Act allows a signatory producer to hire a non-union performer if the performer possesses a specific quality or skill essential to the role that is not readily available among union members. The producer must file a Taft-Hartley Report within fifteen days of the actor's first day of work (twenty-five days for overnight on-location productions), including the actor's headshot, resume, and a written justification for why the non-union performer was chosen over available SAG members.

Critical point: even though the performer is non-union, they must be paid according to the applicable SAG minimum scale and all P&H contributions must be made on their behalf. The Taft-Hartley process does not create a discount. It creates access. The performer is treated as union talent for the purposes of the production.

Under the Low Budget Agreement, producers can hire both union and non-union performers under the same terms. This is one of the key advantages of the LBA for indie producers who want access to SAG talent but also need the flexibility to cast locally or discover new performers.

Once a Taft-Hartley report is processed, the non-union performer becomes eligible to join SAG-AFTRA. One principal role Taft-Hartley is equivalent to three background Taft-Hartleys for the purpose of union eligibility.

Residuals: The Obligation That Follows the Film

Residuals are compensation paid to performers for use of a production beyond the initial exhibition covered by the performer's original compensation. They are a contractual obligation that follows the project through every distribution window, and they are one of the most important long-term cost considerations for any SAG production.

How residuals work depends on the distribution channel:

• Theatrical to home video/streaming. If a film produced under a theatrical agreement is later distributed on DVD, video-on-demand, pay-per-view, television, or streaming platforms, residuals are owed to the performers. The rates and timing depend on the specific distribution method and the terms of the collective bargaining agreement.
• Streaming (SVOD). For high-budget subscription streaming, performers begin earning residuals after the first 90 days of the program going live. In the first year after that initial 90-day window, performers receive a 45% residual rate. This drops to 40% in the second year and 35% by the third year.
• Short Project Agreement exception. Films produced under the Short Project Agreement can be exhibited at film festivals, on free-to-consumer platforms like YouTube or Vimeo, for Academy Award consideration, and on public access television for up to one year without triggering residual obligations. However, any subsequent paid distribution, including theatrical, SVOD, or paid download, constitutes "subsequent use" and residuals become due.

Residuals are typically delivered to SAG-AFTRA first, then distributed to performers. For theatrical, television, and new media productions, the initial residual payment is due four months after initial exhibition, then quarterly as the producer receives revenue. Failing to pay residuals on time triggers penalties and can result in the producer being placed on SAG-AFTRA's unfair list, which prevents them from hiring union talent on future projects.

For independent producers, residual obligations should be factored into your recoupment waterfall from the beginning. They are a cost of distribution, not a cost of production, and they reduce the amount of revenue available for investor recoupment and profit participation. If you are modeling investor returns, residuals belong in the financial projections alongside sales agent fees, delivery costs, and distribution expenses.

Common Mistakes That Cost Producers Money

1. Budgeting only the day rate. The day rate is the floor. Once you add P&H (21%), payroll taxes, workers' comp, overtime, and potential meal penalties, the fully loaded cost of a SAG performer is typically 45% to 55% above gross scale. Budget for the loaded number, not the rate sheet number.
2. Choosing the wrong agreement. If your production qualifies for a lower-budget agreement but you signed the basic theatrical, you are overpaying on every performer for the entire shoot. Conversely, if you sign a low-budget agreement and your budget actually exceeds the cap, you face compliance issues with SAG-AFTRA. Get the agreement right at the signatory stage.
3. Not planning for the security deposit. The security deposit is refundable, but it is not free. It ties up cash during prep and production, exactly when you need liquidity. If you are financing with a tax incentive or gap loan, the timing of the deposit versus the timing of your capital availability needs to be mapped out in your cash flow schedule.
4. Ignoring turnaround requirements. Twelve-hour turnaround violations trigger a full additional day of pay per performer. On a company move day or a night-to-day transition, this is the most expensive scheduling mistake you can make. Your AD should be tracking turnaround on every call sheet.
5. Letting meal penalties stack up. A crew that eats late costs money across every department, but SAG meal penalties are the most visible line item. Build your shooting schedule around hard meal breaks, not flexible ones. The $25–$50 per half-hour per performer adds up faster than you think.
6. Forgetting residuals in the financial model. Residuals are a real cost of distribution that reduces the revenue available for investor recoupment. If your waterfall model does not include a residual reserve, your investors are looking at projections that overstate their returns. This matters when you are raising money.
7. Starting the signatory process too late. SAG recommends four to six weeks. First-time signatories should plan for six to eight. If you are three weeks from your shoot date and have not started the process, you are behind.

Final Thoughts

Working with SAG-AFTRA talent is a commitment that extends well beyond day rates. It requires understanding which agreement fits your project, budgeting for the fully loaded cost of every performer, planning for cash flow impacts like the security deposit, scheduling to avoid preventable penalties, and modeling residual obligations into your long-term financial plan.

The producers who navigate this well are the ones who treat SAG compliance as a budgeting exercise, not just a legal requirement. Every rate, contribution, penalty, and residual has a number attached to it. When those numbers are in your budget from the start, there are no surprises.

If you are building a production budget and need to model how SAG costs fit into your overall financing structure, our Film Tax Incentives Map can help you evaluate how state incentives offset your labor costs, and our Film Recoupment Waterfall Calculator lets you model how SAG residuals and other distribution costs affect investor returns. For a deeper look at how tax incentives work and which states offer the best effective rates, see our guide to film tax incentives. And for a walkthrough of recoupment structures and payment priority, our guide to the film recoupment waterfall covers the mechanics in detail.