The EssentialShowbiz Dictionary™

of Entertainment Industry Terms

Modified Low Budget

2 minute read | Last updated: 2 years ago

What does Modified Low Budget mean?

Modified Low Budget is a specific SAG-AFTRA contract tier for theatrical feature films with total budgets between approximately $700,000 and $2.5 million — above the ultra low budget threshold but below the full SAG-AFTRA basic agreement minimums. The modified low budget agreement allows qualifying independent productions to hire SAG-AFTRA performers at reduced minimum rates compared to the standard agreement, making union production accessible for films that could not operate under full SAG-AFTRA terms. The specific budget thresholds and rate structures are periodically renegotiated between SAG-AFTRA and the Alliance of Motion Picture and Television Producers.

Example:The independent feature qualified for the SAG-AFTRA modified low budget agreement, allowing the producers to cast union performers at reduced day rates while maintaining the production’s status as a union signatory — a balance that made the film financially viable without excluding professional talent.
Example: The agent confirmed that the modified low budget rate for the role was significantly below what her client typically received, but advised accepting it because the project’s creative merit and the director’s reputation made it a worthwhile career investment.

Did you know?
SAG-AFTRA’s tiered agreement structure — from student film through ultra low, modified low, low budget, and up to the full basic agreement — reflects the union’s recognition that a single rate structure would effectively exclude independent filmmakers from the union system entirely. By creating accessible entry points for lower-budget productions, SAG-AFTRA expands its membership base, ensures performers receive some professional protections even on modest productions, and helps legitimate independent film flourish alongside studio production.

You can also find “Modified Low Budget” and related terms in this category: Contracts and Agreements.
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