> Disclaimer: This post describes general provisions of SAG-AFTRA low budget agreements for educational purposes only. It does not constitute legal advice. Rates and thresholds are subject to renegotiation. Verify current terms directly with SAG-AFTRA at sagaftra.org/production-center or through a qualified entertainment attorney before executing any agreement.
The Agreement Choice That Locked the Casting
A producer registers her $280,000 narrative feature under the SAG-AFTRA Ultra Low Budget Project Agreement (UPA), attaches two principal performers, and starts prep. Three weeks before principal photography, a financier joins and increases the budget to $340,000. The production is now $40,000 above the UPA ceiling. SAG-AFTRA requires the production to re-execute under the Moderate Low Budget Project Agreement (MPA), retroactively triggering the 19% pension and health contribution on every performer's compensation already contracted. That unplanned P&H liability costs the production $5,200 it did not have in the contingency.
The agreement tier decision is not just about which day rate you are comfortable paying. It sets the entire labor framework for the production, and changing it mid-stream is expensive. Understanding the structural differences between the UPA and MPA before attaching talent determines what you can afford, who you can cast, and what your post-production obligations will look like.
This post compares both agreements on the dimensions that matter for a typical indie narrative feature, using the 2026 SAG-AFTRA rates that took effect July 1, 2026. The rates and terms are drawn from the 2026 TV/Theatrical Agreement approved by SAG-AFTRA members on June 4, 2026, and the signatory resources at SAGindie.
SAG-AFTRA Low Budget Agreements at a Glance
SAG-AFTRA offers six low budget agreement tiers, each with a different budget ceiling and rate structure. The two most common for indie features are the UPA and MPA:
| Feature | Ultra Low Budget (UPA) | Moderate Low Budget (MPA) |
|---|---|---|
| Budget Ceiling | $300,000 | $700,000 |
| Day Rate (eff. 7/1/26) | $257 | $449 |
| Weekly Rate | Not available | $1,560 |
| P&H Contribution | 19% employer | 19% employer |
| Background Actors | Not covered | Not covered (unless incentive) |
| Residuals | Deferred until recoupment | Modified structure |
| Taft-Hartley | Allowed | Allowed with conditions |
| Consecutive Employment | No (except overnight) | No (except overnight) |
| Overtime | Reduced rate | Reduced rate |
| Day Rate (7/1/27) | $264 | $462 |
| Weekly Rate (7/1/27) | N/A | $1,607 |
The 2026 TV/Theatrical Agreement increased all minimum rates by 3% effective July 1, 2026, with additional 3% annual increases each July 1 through June 30, 2030. The UPA day rate rises to $264 on 7/1/27 and $272 on 7/1/28. The MPA day rate rises to $462 on 7/1/27 and $476 on 7/1/28.
The most financially significant row is P&H contributions. Both the UPA and MPA require a 19% employer contribution to the SAG-AFTRA Pension and Health Plans on all performer compensation. This is not optional. If you pay an actor above scale, the 19% P&H applies to the full amount, not just the scale portion.
How the P&H Difference Changes the Real Budget
Pension and health contributions compound quickly. On a production with 5 SAG-AFTRA performers each earning $3,000 in total compensation, the P&H obligation is 5 x $3,000 x 0.19 = $2,850 above the cast budget line. On a production where the lead earns $20,000, that single performer generates $3,800 in P&H alone.
Worked example: A $250,000 feature with 5 SAG-AFTRA performers over 12 shooting days. UPA cost: 5 x 12 x $257 = $15,420 in scale + $2,930 in P&H (19%) = $18,350. MPA cost: 5 x 12 x $449 = $26,940 + $5,119 P&H = $32,059. The difference is $13,709. On a tight indie budget, that gap can shift the production from viable to not.
The trade-off is the talent pool. The UPA's lower scale rates mean established SAG-AFTRA performers are working well below their standard earnings. Producers compensate through deferred compensation tied to distribution proceeds, backend participation, or favorable billing terms. The MPA's higher rates make it easier to attract name actors whose agents require higher minimums.
Three Production Scenarios
Scenario 1: $180K Debut Feature Using UPA
A first-time director with a $180,000 budget needs two SAG-AFTRA leads for a 12-day shoot. The UPA applies. Two performers at $257/day across 12 days each cost $6,168 in performer fees. P&H at 19% adds $1,172. Total cast cost: $7,340. The budget clears the $300,000 ceiling with $120,000 of margin. The Budget Breakdown Calculator confirms cast costs represent 4% of the total budget. The UPA is the right tool: the economics work and the budget buffer is intact.
Scenario 2: $500K Feature Using MPA for Name Cast
A producer closes financing at $500,000 with a recognizable SAG-AFTRA performer attached as a co-production condition from the equity investor. The budget exceeds the UPA ceiling, so the MPA is required. The lead performer's total compensation is $30,000 across the shoot. The P&H contribution on that figure is $5,700. The production budgets for this from the start, includes P&H in the above-the-line cast budget, and uses the Day Rate Calculator to model the full cast cost before making offers.
Scenario 3: $300K Feature at the UPA Ceiling
A producer at exactly $300,000 must choose UPA or MPA. The UPA saves $13,000+ in cast costs but limits the talent pool to performers willing to work at $257/day. The MPA opens up better actors at $449/day but pushes the budget higher with P&H obligations. The producer chooses UPA and offers backend compensation to attract talent. The key risk: any cost overrun above $300,000 triggers retroactive MPA reclassification and P&H liability. Building a $30,000 contingency buffer before registering is essential.
How to Choose Between UPA and MPA: A Decision Framework
Step 1: Lock your final budget estimate before approaching SAG-AFTRA. The agreement tier is determined by the production's total negative cost, not by the cast budget alone. Production overruns that push the total cost above $300,000 after UPA registration require renegotiation.
Step 2: Calculate cast costs at both tiers. Use the Day Rate Calculator to model your cast budget at UPA and MPA rates. Include P&H at 19% on all performer compensation, not just scale. If you pay above scale, P&H applies to the full amount.
Step 3: Assess your casting needs. If you need name actors for distribution leverage, the MPA's higher rates may be necessary to attract talent. If you are casting unknowns, the UPA is sufficient. Some actors' agents require MPA minimums regardless of the producer's budget.
Step 4: Factor in residuals. UPA residuals are deferred until the film recoups its negative cost. The MPA has a modified residuals structure that may require payments sooner. Consult an entertainment attorney for the specific residual obligations under each agreement.
Step 5: Sign the agreement before casting. You cannot change tiers mid-production. Register with SAG-AFTRA as a signatory before making any cast offers. The signatory process takes 3 to 5 business days, so build it into your pre-production timeline.
Pro Tips and Common Mistakes
Pro Tip: The 2026 SAG-AFTRA contract includes 3% annual rate increases through June 30, 2030. If your shoot is in 2027, budget for the higher rates: $264 UPA, $462 MPA. If your shoot crosses July 1, the rate increase applies to all work performed on or after that date.
Pro Tip: P&H contributions are owed on all performer compensation, not just scale. If you negotiate an above-scale rate for a name actor, the 19% P&H applies to the full negotiated amount. A $5,000 above-scale payment generates $950 in additional P&H that must be budgeted.
Pro Tip: The UPA allows you to hire non-union performers alongside SAG-AFTRA members. This is useful for filling background and small roles without SAG obligations. Document the casting process for any Taft-Hartley filings within 15 days of the non-union performer's first day.
Common Mistake: Choosing the MPA when the UPA would suffice. The difference in cast cost on a 12-day shoot with 5 SAG performers is $13,700+. That money could fund post-production or marketing. The fix: model both scenarios in the Budget Breakdown Calculator before registering.
Common Mistake: Forgetting P&H contributions in the budget. At 19%, P&H adds thousands to the cast budget. A $20,000 lead performer contract generates $3,800 in P&H alone. The fix: always calculate P&H as a separate line item, not a rounding error.
Common Mistake: Signing the agreement tier before checking if your target actors will work at that rate. Some actors' agents require MPA minimums regardless of the producer's budget. The fix: confirm your lead cast's willingness to work at the chosen tier before executing the agreement.
Frequently Asked Questions
Can I switch from UPA to MPA mid-production?
No. The agreement tier is locked when you register as a signatory. Changing tiers requires SAG-AFTRA approval and may delay production. If your budget increases above $300,000 after UPA registration, SAG-AFTRA can require re-execution under the MPA with retroactive P&H liability on all performer compensation already paid.
Does the UPA cover background actors?
No. The UPA covers only professional performers with speaking roles. Background actors are not covered under the UPA. The MPA also does not cover background unless you use the Background Performer Incentive. Most low budget productions use non-union background performers, which both agreements permit.
What are the 2026 rate increases?
Starting July 1, 2026, all minimum rates increased 3%. The UPA day rate went to $257, the MPA day rate went to $449, and the MPA weekly rate went to $1,560. Additional 3% increases follow each July 1 through 2030. By 7/1/29, the UPA day rate reaches $280 and the MPA day rate reaches $491.
Do I owe P&H on the UPA?
Yes. Both the UPA and MPA require a 19% employer contribution to the SAG-AFTRA Pension and Health Plans on all performer compensation. This is current as of the 2026 contract. Verify the exact P&H rate at sagaftra.org before budgeting, as rates can change with contract negotiations.
Can I use the UPA for a short film?
No. The UPA is for theatrical feature films. Short films use the Short Project Agreement (max budget $50,000, max runtime 40 minutes) or the Micro Budget Agreement (max budget $20,000, max runtime 35 minutes). Using the wrong agreement creates a compliance violation regardless of budget.
Where do I verify current rates?
Check the SAG-AFTRA Production Center at sagaftra.org/production-center or SAGindie. Rates change annually under the 2026 contract. The ABS Payroll SAG rate guide also publishes current rates for all agreement tiers.
Related Tools and Resources
The Budget Breakdown Calculator models above-the-line cast costs at both UPA and MPA scale rates, including P&H on both scenarios. The Day Rate Calculator calculates cast day rates for union and non-union productions. The Shooting Day Cost Calculator calculates daily burn rate including cast costs.
For the adjacent budget items that interact with cast costs, How to Build an Indie Film Budget covers above-the-line, below-the-line, and contingency budgeting with P&H as a separate budget category. For meal penalty compliance on SAG sets, How to Estimate Crew Catering Costs covers the 6-hour meal rule and penalty structure.
The current SAG-AFTRA low budget rate schedules are published at sagaftra.org/production-center. SAGindie maintains the 2026 TV/Theatrical contract updates with all new rates and annual increase schedules.
The Agreement That Fits Your Actual Budget
The choice between UPA and MPA is a budget math problem before it is a casting problem. A $180,000 film uses the UPA because the economics support it. A $500,000 film uses the MPA because it has to. The films that get into trouble are the ones that register under the UPA without a buffer, overrun into MPA territory, and discover the retroactive P&H liability after the fact.
Lock your budget. Calculate P&H on every scenario. Post the signatory deposit before casting. Those three steps handle the majority of SAG-AFTRA compliance problems that first-time producers encounter.
Which SAG-AFTRA agreement tier have you used, and did the P&H contribution surprise you in the budget? How did you handle the cast cost?
