2025 SAG-AFTRA Commercials Contract: Key Changes Producers and Advertisers Need to Know
Summary:
SAG-AFTRA’s new Commercials Contract brings major updates for 2025, including AI protections, extended MPUs, and revised testimonial rules.
Wages, Use Fees, and Pension & Health: Wages rise 5%-4%-3% over three years; new digital/cable use fees introduced; P&H contribution set at 23.5%.
AI terms clarified for Digital Replicas and Synthetic Performers—consent, notice, and premium pay now required.
MPU extended to 24 months; testimonial proof standards eased to reduce legal burden.
Takeaway: Producers must update compliance workflows and budget plans to reflect the new terms.
Significant changes are on the way for producers and advertisers planning future commercial campaigns. On April 26th, SAG-AFTRA and the JPC announced a tentative agreement introducing key updates to the Commercials Contract, including new contract terms, wage increase and additional costs. Understanding these updates is important for producers and advertisers to maintain union compliance and accurately budgeting when hiring union talent.
In this blog, we will break down key changes to the SAG-AFTRA Commercials Contracts - covering updates related to Artificial Intelligence, the Low Budget Waiver, Wages, Use Fees, Pension and Health Contributions and other important changes. Stay informed to ensure compliance, avoid unexpected budget overruns, and keep your next production running smoothly.
Please note: This is not a complete list of all changes to the Commercials Contract. Additional updates and full language will be released in the official Memoranda of Agreement (MOA) following ratification. We’ll continue to provide guidance as more details become available.
Background on the 2025 Commercials Contract Negotiations
The JPC led by DLA Piper team, and SAG-AFTRA have carefully negotiated terms to the Commercials Contract following the set expiration of the agreement on March 31st, 2025. The National Board of SAG-AFTRA has since unanimously approved the tentative agreement, which will now proceed ratification by SAG-AFTRA members. This is a major milestone - achieving a new Commercials Contract without a strike, a first since the 2022 agreement.
Timeline of key events:
February 20th, 2025: Negotiations between the JPC and SAG-AFTRA begin.
March 31st, 2025: The previous SAG-AFTRA Commercials Contract expires.
April 12th, 2025: Tentative agreement is reached.
April 27th, 2025: SAG-AFTRA National Board approves the new agreement.
Upcoming: Ratification vote by SAG-AFTRA members.
This collaborative process reflects a strong commitment by all parties to ensure the new agreement supports both performers and producers while keeping the industry moving forward.
Major Commercial Contract Changes
In this section, we will break down the key changes that will directly impact how producers and advertisers hire and work with union talent for future commercial campaigns.
Artificial Intelligence Rules and Protections
| AI Usage Fee Structure Summary | |||
|---|---|---|---|
| AI Application | Fee Type | Rate | Notes |
| Digital Replica | Session Fee | 1.5x scale | Per commercial where replica is used |
| Use & Holding Fees | At scale | Treated as if performer was live | |
| Synthetic Performer (Mixed) | Session + Use Fees | 1.5x scale + applicable fees | Paid within 30 days of airdate |
| Synthetic Performer (Exclusive) | Per hour no less than | TBD | Only when no humans are used |
Digital Replicas
A Digital Replica is a recreation of a real performer’s voice, likeness or performance using digital technology such as AI tools.
Notice: 48-hour notice is now required for use or creation of a Digital Replica - or shorter if talent is engaged less than 48 hours prior to shooting)
Consent:
Producers may now receive consent for Digital Replicas of union talent for their commercials where the performer has not yet engaged in given that the performer consents to the specifics of creation and that the campaign is for the same advertiser and product line used within the Maximum Period of Use (MPU).
Performers consent can be obtained through the Digital Replica Rider or in a separate document that is signed in writing.
Session Fee: Session payments are 1.5 scale for each commercial that Digital Replicas are used in.
Use and Holding Fees: Performers must be paid for use of a performance generated by Digital Replicas as if the performer had performed live, including all holding and use fees.
Synthetic Performers
Unlike digital replicas that are based on a real person, synthetic performers are not based on real people, it is a fictional creation.
Use: Synthetic performers are used in a commercial that includes the on camera principal performance of at least one performer.
Session Fees:
Producer must pay 1.5 session fees and scale use when applicable within thirty days of the first aired commercial.
When working on commercials that are exclusively synthetic performers, producers can directly negotiate rates with SAG-AFTRA.
2. Low Budget Digital Waiver Codification
Both the JPC and SAG-AFTRA have agreed to keep the Low Budget Digital Waiver as it exists until March 31st, 2028.
3. Wages, Use Fees, and Pension & Health Contributions
Wage Increases
| Wages, Use Fees, and P&H Summary | ||||
|---|---|---|---|---|
| Category | 2025 | 2026 | 2027 | Notes |
| Wage Increase | +5% | +4% | +3% | Applies to base session fees |
| P&H Contribution (Standard) | 23.5% | 23.5% | 23.5% | Standard contribution rate |
| P&H for JPC Authorizers | 19.95% | 19.95% | 19.95% | Reduced rate with JPC waiver |
| P&H for Digital Only | 40% | 40% | 40% | Applies to campaigns used exclusively in Traditional Digital categories |
Wage increase includes 5% in year one, 4% in year two, 3% in year three.
Update to Use Fees
| Use Fee Categories Summary | ||
|---|---|---|
| Category | Rate Notes | Subject to Annual Wage Increase? |
| Class A & Cable | Held at 2022 levels | Yes |
| Single Channel Cable | New cycle option (excludes major channels like ESPN, CNN, etc.) | Yes |
| National Cable Tier 2 | For 2M-3M subscribers | Yes |
| Paid YouTube (Pre/Mid-Roll) | +12% above Traditional Digital | No |
| Streaming Platforms | Rate increase | No |
Holding Class A and cable rates at 2022 levels.
New Single Channel Cable Rate is an added cycle option for advertisers airing on a single cable channel excluding the following channels:
ESPN
TNT
TBS
USA
Fox News
Bravo
Food Network
Fox Sports 1
CNN
Discovery
E!
The National Cable Waiver extended and expanded adding a second tier for 2,000,001 to 3M subscribers.
New premium tier for Paid YouTube category (pre-roll and mid-roll on YouTube) that will be 12% higher than Traditional Digital but will not include the annual wage increase.
Chicago is reclassified as a major Wild Spot market.
Streaming platform rate increases as well but are not subjected to the overall wage increase.
Pension & Health Contributions
23.5% contribution rate with a waiver of 3.55% for JPC authorizers.
Reduced P&H Allocation (40%) for Commercials used exclusively in Traditional Digital categories.
4. Longer Maximum Period of Use (MPU)
The Maximum Period of use (MPU) has been extended to 24 months that will begin 10 business days after the start of on-camera principal photography.
5. Non-Professional Testimonial Waiver Revisions
The Non-Professional Testimonial Waiver has been updated to clarify that if a producer pays a non-professional endorser in order to meet their legal requirements does not disqualify the producer from using the same endorser in another commercial in the future.
For someone to classify as a non-professional testimonial under this waiver their appearance must involve describing their own experiences or opinions about the product or service. Producers are no longer required to show proof that the person’s experience or opinion is typical of an average consumer. This saves producers time from gathering proof and legal review.
6. Social Media and YouTube Liability Cap Changes
Under the new contract, the lability cap - meaning the maximum amount a producer could owe if a commercial was used after the MPU expired - is now the same for both social media and YouTube.
7. Claims Notification Requirement
SAG-AFTRA must now serve copies of claim letters to JPC when a JPC authorizer is involved.
Conclusion: Navigate the SAG-AFTRA Commercials Contract with Confidence
In conclusion, the 2025 Commercials Contract introduces important updates producers and advertisers should know about to successfully navigate union compliance and accurate budget. From new rules surrounding Artificial Intelligence to restructured wages, expanded use fee options and Pension & Health changes, these changes will significantly impact how producers work and hire union talent for future commercial campaigns.
As a reminder, this is not a full list of all contract changes—additional updates are expected in the final MOA once SAG-AFTRA member ratification is complete. We’ll continue to share updates as they become available to help you stay ahead.
Need help navigating the new SAG-AFTRA Commercials Contract?
CMS Productions is a third-party union signatory to the SAG-AFTRA Commercials, Corporate, Educational / Industrial & Interactive Media contracts with an expert team on those contracts to properly estimate and budget hiring union performers for your upcoming commercial.
CMS Productions is happy to assist you hire the best union performers for your next commercial project. Contact us today to set up a consultation.