What does Low Budget Agreement mean?
Low Budget Agreement is the SAG-AFTRA contract for films with a budget under $2.5 million. This agreement is designed to make it easier for independent and lower-budget filmmakers to hire SAG-AFTRA talent while ensuring actors are still fairly compensated. The agreement offers flexibility in pay rates while still maintaining core protections like health and pension benefits. It’s often used by indie filmmakers working on films that may screen at festivals or have limited theatrical releases.
Key Points of the Low Budget Agreement:
- Budget Limit: Applicable for films with a total budget of up to $2.5 million.
- Flexible Pay Scales: Pay rates are adjusted to make it more affordable for indie filmmakers to hire union talent.
- Residuals and Benefits: Even with lower pay rates, actors are still entitled to health, pension, and residuals when applicable.
Negotiation Tips:
- Deferred Payment: Filmmakers may offer deferred payments, and actors can negotiate for bonuses or back-end participation if the film performs well at festivals or in theaters.
- Percentage of Profits: For indie films expected to find a distributor, actors can negotiate for a percentage of profits in addition to their base pay.
- Film Festival Bonuses: If the project enters festivals, actors may be able to negotiate additional payments or bonuses if the film wins awards or secures distribution.
Example:An indie filmmaker producing a drama with a budget of $1 million used the Low Budget Agreement to hire union talent, offering deferred pay to manage costs.
Example: A festival-bound film shot under the Low Budget Agreement allowed the actors to negotiate profit-sharing in case the film found a distributor.
Did You Know?
Many indie films that premiere at major festivals like Sundance use the Low Budget Agreement to hire SAG-AFTRA talent while staying within their production budget!
Learn More:
For more detailed information, visit the official SAG-AFTRA Low Budget Agreement page.
