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2026 Changes to the Low Budget Theatrical Sideletter

News Sept 2026August 19, 2026

The DGA Low Budget Theatrical Sideletter covers scripted films intended for theatrical release with budgets of up to $11 million. This contract provides modified terms and conditions that address producing lower budget features under a DGA contract. The entire agreement can be found on the DGA website.

From July 1, 2026, until June 30, 2027, the following modified terms are now in effect:

  • Budget tiers have been revised as follows:
    • Level 1a: $500K and under
    • Level 1b: $500K-$1.1M
    • Level 2: $1.1M-$3M
    • Level 3: $3M-$4M
    • Level 4a: $4M-$5.5M
    • Level 4b: $5.5M-$8.5M
    • Level 4c: $8.5M-$11M
  • Director salary for Level 3 is now 33% of the BA minimum with a 13-week guarantee, for a total of $108,168. Previously a flat fee structure applied.
  • Basic Agreement prep time requirements now apply for BTL at Level 3 and above
  • Wrap supervision allowance is now required at Levels 2-4b, at 50% of the BA rate
  • Completion of assignment pay is now required at Level 2, computed at 50% of the BA requirement
  • Production fees at Level 2 increased from $25/week to $100/week for all eligible categories
  • Premium salary is now due for work on a 7th day at Level 2, at time and a half (150%)
  • And before the start of principal photography, the Employer must submit to the DGA a Final Cost Statement (as defined in the agreement).

To see the details on the DGA Low Budget Agreements, visit the contracts section.
For more information contact the DGA Contracts Department at (310) 289-2010 or email contracts@dga.org.

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