What producers need to know about the SAG-AFTRA commercials contract
-
What it governs: The SAG-AFTRA commercials contract sets the wages, working conditions, residuals, and benefit contributions you owe every union performer on a commercial shoot.
-
Signatory comes first: You cannot audition or cast union talent until a signatory is attached, whether that is a direct signatory, a third-party signatory, or a One Production Only agreement.
-
Paperwork by stage: Required paperwork changes at every production stage, and one missing form, whether Exhibit A-1, Exhibit G, or a Taft-Hartley report, can turn into penalty fees.
-
The real talent cost: Session fees are only the starting point — residuals and the 23.5% Pension & Health contribution decide what the talent line actually costs.
-
Celebrity deals: Above-scale deals can be structured for real savings, because multi-service contracts put only 50% of compensation under P&H and P&H is capped at $1M of compensation per contract year.
The SAG-AFTRA commercials contract is the collective bargaining agreement that governs how advertisers and producers hire, pay, and work union performers on commercial productions. It sets minimum session fees, working conditions, residual payments, and pension and health contributions, and every production that casts union talent has to be covered by it through a signatory. In practical terms, it is the document that decides what your talent line actually costs.
That decision usually arrives in pre-production, when you are weighing union against non-union talent. Hiring union performers brings a list of obligations your production team owns from the first audition through the last residual payment, and SAG-AFTRA requires a separate contract with each performer you engage.
Those rules exist to protect performers with negotiated wages, safe working conditions, and health and retirement benefits. They also run to hundreds of pages, and when a producer is not fluent in the terms, the cost of talent climbs fast.
What is the SAG-AFTRA Commercial Contract?
The SAG-AFTRA commercials contract is the agreement a production becomes party to in order to hire union performers for commercial work. It establishes the compensation, working conditions, and benefit contributions you owe every performer on the shoot, and it stays in force for as long as the commercial runs.
Coming under the contract commits your production to:
- Negotiated minimum wages (scale) for each performer category
- Fair working conditions, including rules on hours, breaks, and overtime
- A defined process to resolve disputes and make adjustments
- Pension and health contributions on covered earnings
- Residual payments for the life of the commercial’s use
SAG-AFTRA enforces these terms closely. Failure to comply can lead to violations that carry penalty fees for the producer or advertiser, and in some cases union grievances and claims that take months to resolve. SAG-AFTRA publishes the current agreement documents and the signatory process on its Commercials Contract production center.
What Makes SAG Commercial Contract Complicated?
The SAG-AFTRA commercials contract is complicated because it covers compensation, work hours, residuals, casting procedure, and safety standards in a single agreement, and the terms that apply shift with the project type and each performer’s role. Two commercials shot the same week can carry different obligations.
The contract also governs the hiring process itself, not only the shoot. It sets requirements for audition notice and audition time, callbacks, and wardrobe fittings, all of which start before a single frame is shot.
Here are a few other reasons the Commercials Contract can be difficult to navigate:
1. The Agreement Is Renegotiated Every Three Years
It is a legally binding agreement renegotiated and revised on a regular cycle between SAG-AFTRA and the producers’ representatives, so terms you learned on a past job may no longer apply. Our primer on how to read union contracts is a useful place to start.
2. Requirements Vary by Project and Performer Role
SAG-AFTRA commercial contract requirements vary by project and by the roles of the performers involved, which makes it a real exercise to determine the exact terms that apply to any one job.
3. Compliance Depends on Procedure and Timing
Compliance depends on procedure and timing: audition notice, safety standards, and session and residual payments all have deadlines attached.
4. Small Misses Escalate Quickly
Missing those requirements can escalate into legal issues or labor disputes that cost more to resolve than the original obligation.
5. The Current SAG-AFTRA Commercials Contract Took Effect in 2025
The current SAG-AFTRA commercials contract took effect April 1, 2025 and runs through March 31, 2028, and that round moved real numbers: new AI provisions, wage increases of 5% in year one, 4% in year two, and 3% in year three, and an updated pension and health rate. Staying current across each cycle, and adjusting bids and paperwork to match, is the work most producers hand to a signatory expert rather than absorb in-house.
Failure to follow the requirements under the Commercials Contract can result in legal issues or labor disputes, which can be costly and time-consuming to resolve.
SAG-AFTRA Commercials Rates and The SAG Commercial Rate Sheet
SAG-AFTRA commercial rates sets the minimum a signatory can pay a performer for a session and for every category of use. A new sheet takes effect each April 1, so the rate sheet year you bid from is what decides the cost of the job.
Rates under the current SAG-AFTRA commercials contract rise on a set schedule: 5% in year one, 4% in year two, and 3% in year three. A bid built on last year’s sheet will come in short, which is the most common budgeting error we see on first union jobs.
Current SAG-AFTRA Commercial Rates for Session Work
On the year-two sheet, effective April 1, 2026 through March 31, 2027, the session minimums are:
- On-camera principal performer: $855.20 per session day
- Hand model: $711.80
- Stand-in: $513.10
- General extra: $466.60
- Non-air commercials and demos: $641.40
Pension and health sits on top of all of it at 23.5% of covered earnings, or the discounted 19.95% rate for JPC authorizers . For a single on-camera principal on a one-day shoot, that is roughly $200 in P&H before a frame of the spot has aired.
Tips for Navigating SAG-AFTRA Commercials Contracts
The four steps below cover where producers most often lose money on the SAG-AFTRA commercials contract: signatory status, stage-by-stage paperwork, residual and benefit costs, and celebrity deal structure. Work them in order and the budget surprises mostly disappear.
1. Attach a SAG-AFTRA signatory before you cast
You cannot audition or hire union talent until a SAG-AFTRA signatory is attached to the project. A signatory is the entity that has signed the SAG-AFTRA commercials contract and accepted responsibility for complying with its terms when working with union performers.
Your team then has three options when engaging with SAG talent:
Become a direct signatory to SAG-AFTRA Commercials contracts:
Becoming a direct signatory gives you full control but binds your company to union terms on future work.
Hire a third-party SAG-AFTRA signatory company:
A third-party SAG-AFTRA signatory keeps your company off the signatory list while the compliance work is handled for you.
Sign a One Production Only Agreement (OPO) directly with SAG-AFTRA:
An OPO covers a single job and has to be repeated each time.
Direct signatory, third-party signatory, or OPO: what each SAG-AFTRA commercials contract route actually commits you to
All three routes get union talent on your set. They differ on who carries the obligation, how long it lasts, and how much of the compliance work stays in-house.
| Decision factor | ROUTE 1Direct signatory | ROUTE 2Third-party signatory | ROUTE 3One Production Only (OPO) |
|---|---|---|---|
| Who signs the agreement | Your production company | The signatory company you engage | Your production company, for one job |
| What the signature covers | All union commercial work you produce going forward | Only the project the signatory takes on | A single named production |
| Your company appears on SAG-AFTRA's signatory list | Yes — ongoing | No — the signatory company is listed | Yes — tied to that production |
| Binds your future projects | Yes | No | No |
| Contractual responsibility to SAG-AFTRA sits with | Your company | The signatory company, as employer of record | Your company |
| Who runs cast clearance, Exhibit G and P&H filings | Your team, in-house | The signatory company | Your team, in-house |
| Repeat work per project | None — onboarding happens once | A new engagement each time, no re-application | A new OPO for every production |
| Where the exposure lands if paperwork slips | Directly on your company | On the signatory company handling compliance | Directly on your company |
| Best fit | Companies shooting union commercials regularly with staff who know the contract | Advertisers and producers who want union talent without standing union obligations | One union spot, no plans to repeat it |
Scroll the table sideways to compare all three routes.
2. Complete SAG-AFTRA paperwork by production stage
SAG-AFTRA paperwork changes at every stage of production, and late or missing forms are one of the most common sources of penalty fees and start-date delays. The list below tracks what is due in pre-production, production, and post.
Every SAG-AFTRA commercials contract form, by production stage
| Pre-production form | What it is |
|---|---|
| Signatory Application | Commits you to the union's terms as a signatory producer.Third-party signatory covers this |
| Commercial Production Agreement | Sets the terms the spot is produced under: shoot dates, locations, compensation.Third-party signatory covers this |
| Cast List | Every performer with their role. Cast clears through SAG-AFTRA before hiring. |
| Performer Contracts | Each performer's own terms: compensation and working conditions. |
| Taft-Hartley Report | Justifies a non-union hire under the union's jurisdiction. How it works. |
| Production form | What it is |
|---|---|
| Principal Employment ContractExhibit A-1 | Employment terms for principals: performers with speaking or featured roles. |
| Extra Employment ContractExhibit A-2 | Employment terms for background actors and extras. |
| Production Time ReportExhibit G | Daily record of hours, overtime and meal breaks. Your proof of compliance. |
| Post-production filing | What it is |
|---|---|
| Pension, Health & Retirement | Contributions filed per performer, on time and credited accurately. |
| Final Cast List Report | Every performer on the finished spot, filed with SAG-AFTRA. |
| Commercial Tracking Report | Air dates and platforms. Residuals are calculated from it. |
Pre-Production Stage:
Signatory Application:
To become a SAG-AFTRA signatory producer, you need to fill out and submit a signatory application. This establishes your commitment to adhere to the union’s terms and conditions. However, if you hire a third-party SAG-AFTRA union signatory, this step isn’t required.
Commercial Production Agreement:
This is the agreement between the producer and SAG-AFTRA that outlines the terms and conditions under which the commercial will be produced. It will include information about the shoot dates, locations, and compensation for performers. This step is also not required if you use a third party signatory company.
Cast List:
Provide a complete list of performers, including SAG-AFTRA members and non-members, with their roles and contact information. Cast must be cleared through SAG-AFTRA before hiring.
Performer Contracts:
Each SAG-AFTRA performer must sign a performer contract outlining their specific terms, such as compensation, working conditions, and other provisions.
Taft-Hartley Report:
If you hire non-union performers, you may need to submit a Taft-Hartley report explaining the reasons for the hire and justifying the employment under the union’s jurisdiction.
Production Stage:
Principal Employment Contract (Exhibit A-1):
The standard form used to formalize employment terms for principal performers, meaning actors with speaking roles or who are otherwise featured, as opposed to background actors and extras.
- Extra Employment Contract (Exhibit A-2):
The standard form used for background actors and extras. These performers typically do not have speaking roles and are used to create the atmosphere of a scene.
- Production Time Reports (Exhibit G):
Completed daily during production to track work hours, overtime, meal breaks, and other work-related details for each performer. This is what proves compliance with union rules on hours, breaks, and compensation.
Post-Production Stage:
- Pension, Health, and Retirement Contributions:
Producers are required to contribute to the SAG-AFTRA pension, health, and retirement funds on behalf of each performer, on time, with the appropriate paperwork submitted so contributions are credited accurately.
- Final Cast List Report:
At the end of the production, submit a final cast list report, including all performers and their contact information, to SAG-AFTRA.
- Commercial Tracking Report:
This report documents the use of the commercial, including air dates and media platforms, and it is what residual calculations are built from.
Who owns each SAG-AFTRA commercials contract form
| Form | Owner | Trigger | Failure point |
|---|---|---|---|
| Signatory Application | Company principal or Business Affairs | Before any union casting notice | Casting cannot begin |
| Commercial Production Agreement | Producer, with Business Affairs | Once dates and categories lock | Terms negotiated after the fact |
| Cast list and clearance | Casting director | At offers, before booking | One performer holds the booking |
| Performer contracts | Producer or payroll provider | At booking, before work starts | Verbal terms fail in a dispute |
| Taft-Hartley report | Casting director, producer signs | Any non-union hire | Hire challenged after the fact |
| Form | Owner | Trigger | Failure point |
|---|---|---|---|
| Exhibit A-1, principals | Production coordinator or set PA | Shoot day, per principal | No signed record of terms |
| Exhibit A-2, extras | Second AD or extras coordinator | Shoot day, per background performer | Nothing on file for an upgrade claim |
| Exhibit G, time report | Second AD, performer-signed | Every shoot day, before wrap | Nothing to rebut an overtime claim |
| Form | Owner | Trigger | Failure point |
|---|---|---|---|
| Pension & Health contributions | Payroll provider | Every payroll run and residual | Exposure and delayed benefits |
| Final Cast List Report | Producer | After the final cut locks | Residuals misrouted |
| Commercial Tracking Report | Agency or advertiser | At first air and any change | Residual gaps become claims |
When it comes to processing payment for talent, most producers bring in an entertainment payroll provider to handle the volume and the deadlines. If you are short on bandwidth in-house across all three stages, back-office production support covers the SAG-AFTRA commercial contract requirements without adding headcount.
3. Understand Residuals, Pension, and Health
Session fees are only a fraction of what a union performer costs. Under the SAG-AFTRA commercials contract, you also owe residuals for the commercial’s use and SAG-AFTRA pension and health contributions on covered earnings, and both belong in the budget from day one.
Day-one cost per performer under the SAG-AFTRA commercials contract
Scale session fees for the 2026–27 contract year, with the 23.5% pension and health contribution applied.
| Performer category | Scale session fee | P&H at 23.5% | Day-one cost | Day-one with JPC waiver (19.95%) |
|---|---|---|---|---|
| On-camera principal8-hour session | $855.20 | $200.97 | $1,056.17 | $1,025.81 |
| On-camera group, 3–5per performer | $643.00 | $151.10 | $794.10 | $771.28 |
| On-camera group, 6–8per performer | $626.10 | $147.13 | $773.23 | $751.01 |
| On-camera group, 9 or moreper performer | $554.30 | $130.26 | $684.56 | $664.88 |
| Off-camera solo or duo2 hours, up to 4 commercials | $321.50 | $75.55 | $397.05 | $385.64 |
| General extrabackground performer | $466.60 | $109.65 | $576.25 | $559.69 |
| Stand-inbackground category | $513.10 | $120.58 | $633.68 | $615.46 |
Scroll the table sideways to see the full cost breakdown.
Session fees only. Use fees and residuals are owed on top. The 19.95% rate applies to JPC-authorized producers taking the 3.55% waiver; everyone else pays 23.5%. Rates reset April 1.
What are SAG-AFTRA Residuals?
SAG-AFTRA residuals are additional payments owed to performers for use of the commercial beyond what the initial session fee covers. Under the SAG-AFTRA commercials contract, they are driven by where and how often the spot runs.
Some factors taken into account to determine residual costs include:
- When and how often it airs
- Where it airs
- What platform it airs
- Talent’s role in the production
What is SAG-AFTRA Pension & Health?
SAG-AFTRA requires producers to fund performer retirement and health benefits through Pension & Health (P&H) contributions. Under the current SAG-AFTRA commercials contract, producers contribute 23.5% of the performer’s covered earnings toward P&H, with a 3.55% waiver available to JPC-authorized producers.
Commercials that run exclusively in Traditional Digital categories qualify for a reduced P&H allocation, where only 40% of the compensation is subject to the contribution rate. For a digital-only campaign, that reduction is worth modeling before you lock the budget, and it keeps the production fully compliant.
P&H is paid on top of session fees and residuals, so a scale performer’s true cost is the wage plus use plus 23.5%. Producers new to paying SAG-AFTRA talent for a commercial tend to budget the session fee and get surprised by the rest.
4. Celebrity or “Above Scale” Contracts
Celebrity and above-scale deals are where the SAG-AFTRA commercials contract offers the most room to manage cost, and the structuring has to happen before the contract is signed. Two provisions do most of the work.
- Bundle Agreements
If you are using celebrity talent for services the Commercials Contract does not cover, structure those services into the contract upfront. A contract that includes non-covered services is treated as multi-service, and only 50% of the total compensation is subject to the P&H contribution rate.
- Know the Cap on Celebrity P&H :
There is a $1M per contract year cap on compensation subject to SAG P&H. At the current 23.5% rate, that puts the maximum P&H obligation for a celebrity SAG-AFTRA member at $235,000 per contract year, reduced where a JPC-authorized producer applies the 3.55% waiver.
Conclusion: Streamline Your SAG-AFTRA Production Needs
The SAG-AFTRA commercials contract decides your signatory path, your paperwork calendar, and roughly a quarter of your talent budget in P&H alone, so understanding it before pre-production protects both the schedule and the spend. This guide covers the working knowledge producers need, though the full agreement goes considerably deeper.
Hiring a third-party signatory company takes the compliance load off your team and keeps the hiring process moving.
CMS is a third-party signatory to the SAG-AFTRA Commercials, Corporate Educational / Industrial & Interactive media contracts. We are here to help you hire the best talent in business for your next project. Contact us to receive a consultation.
FAQs
The SAG-AFTRA commercials contract is the collective bargaining agreement between SAG-AFTRA and advertisers and producers that sets minimum wages, working conditions, residuals, and benefit contributions for union performers on commercial productions. A production becomes subject to it by signing directly, by using a third-party signatory, or through a One Production Only agreement.
SAG-AFTRA renegotiates its major agreements on a three-year cycle, but the rates inside each one step up every year. The current SAG-AFTRA commercials contract runs from April 1, 2025 through March 31, 2028, with scheduled increases of 5% in year one, 4% in year two, and 3% in year three, so a new rate sheet takes effect each April 1.
Yes. Union talent cannot be auditioned or hired until a SAG-AFTRA signatory is attached to the project. You can become a direct signatory, sign a One Production Only agreement for a single job, or engage a third-party signatory company that takes on the contract and the compliance work on your behalf.
Pre-production requires a signatory application, commercial production agreement, cast list, performer contracts, and a Taft-Hartley report for any non-union hires. Production requires Exhibit A-1 principal contracts, Exhibit A-2 extra contracts, and daily Exhibit G production time reports. Post-production requires P&H contributions, a final cast list report, and a commercial tracking report.
A Taft-Hartley report is the form a signatory files when hiring a performer who is not a SAG-AFTRA member, explaining why the non-union performer was cast. It is submitted during pre-production or at the time of hire, and it is what allows a non-member to work on a union job under the SAG-AFTRA commercials contract.
SAG-AFTRA requires advertisers and producers to provide adequate notice and audition time for performers. The notice period varies by audition type and the role being cast, but is typically at least 24 hours. Performers must also receive a copy of the script or sides in advance of the audition.
Noncompliance can result in legal issues and labor disputes, along with fines and penalties from the union. In some cases it can also cost a producer the ability to work with SAG-AFTRA performers in the future, which is the more expensive outcome for a company that shoots commercials regularly.
Budget three layers: the session fee at scale or above, residuals for the commercial’s use, and 23.5% of covered earnings in pension and health. Current minimums are published in the SAG-AFTRA rate sheet for the Commercials Contract, and an entertainment payroll provider or third-party signatory can model the full cost before you cast.
Start by deciding whether union or non-union talent fits the campaign, then attach a signatory before auditions begin. From there the work is sequencing: clear cast through SAG-AFTRA, execute performer contracts, track hours daily on Exhibit G, and file P&H and tracking reports after wrap. Most first-time producers use a third-party signatory for the first few jobs and bring the process in-house later.
SAG scale pay is the minimum a signatory can pay a performer under the SAG-AFTRA commercials contract. On the year-two rate sheet effective April 1, 2026 through March 31, 2027, scale for an on-camera principal is $855.20 per session day, with general extras at $466.60, stand-ins at $513.10, and hand models at $711.80. Those figures are floors, not ceilings: anything negotiated above them is an above-scale deal. Scale pay is also only the session fee, so budget residuals and the 23.5% pension and health contribution on top of it.
The daily rate on a SAG commercial contract is the session fee, which covers one eight-hour workday plus an initial period of use. For an on-camera principal that rate is currently $855.20 per day. Work beyond eight hours is paid at $26.73 per quarter hour, and work past midnight at $40.09 per quarter hour, which is why daily Exhibit G production time reports matter to your budget. Rates step up each April, so check the current rate sheet year before you bid a job.
