Minimum Salary
Minimum Salary Generally
The CBA sets Minimum Salary Players can be paid. The amount is based on their Years of Service (YOS) in the League (other than Two-Way Contracts, which have a set Salary irrespective of YOS).
Player’s Applicable Minimum Salary
A Player’s “applicable Minimum Salary” is his Minimum Salary based the year of signing and his YOS at that time.
As an example, below is the Minimum Salary for the 2025-26 Season. If a Player were signing a Minimum Contract and had 2 YOS, his first year Salary is $2,296,274. Keep in mind that as you move through the life of the Contract, you move diagonally to find the applicable Minimum Salary for years 2 through 5 as applicable.
See the highlighted portion below for a Player with 2 YOS signing his Contract in 2025-26.
| YOS | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| 0 YOS | $1,272,870 | ||||
| 1 YOS | $2,048,494 | $2,150,917 | |||
| 2 YOS | $2,296,274 | $2,411,090 | $2,525,901 | ||
| 3 YOS | $2,378,870 | $2,497,812 | $2,616,754 | $2,735,698 | |
| 4 YOS | $2,461,463 | $2,584,539 | $2,707,612 | $2,830,685 | $2,953,760 |
| 5 YOS | $2,667,947 | $2,801,346 | $2,934,742 | $3,068,140 | $3,201,538 |
| 6 YOS | $2,874,436 | $3,018,158 | $3,161,876 | $3,305,598 | $3,449,321 |
| 7 YOS | $3,080,921 | $3,234,968 | $3,389,014 | $3,543,059 | $3,697,107 |
| 8 YOS | $3,287,409 | $3,451,779 | $3,616,151 | $3,780,524 | $3,944,896 |
| 9 YOS | $3,303,774 | $3,468,962 | $3,634,152 | $3,799,340 | $3,964,529 |
| 10 YOS | $3,634,153 | $3,815,861 | $3,997,570 | $4,179,277 | $4,360,985 |
Ten-Day and Rest-of-Season Contracts pay the Minimum Salary, but prorated over the number of days of the Contract.
The Contract intended to provide Minimum Salary will include an Exhibit 1A specifically stating that Compensation will equal Minimum Salary with no bonuses of any kind.
Click here for the Minimum Salary Scales since 2017-18.
Payment Arrangements
Bonuses
Exhibit 1A expressly states there are no bonuses of any kind in a Minimum Contract. The exceptions include:
- Trade Bonuses;
- Exhibit 10 Bonuses;
- EIPPA (explained below).
While the EIPPA is a Signing Bonus, it is permitted in a Minimum Contract, provided that the Salary still does not exceed Minimum Salary and the Contract makes clear its yearly allocation for each Season.
Advances
Permitted if the Minimum Salary is partially or fully protected for lack of skill/injury/illness.
Can be advanced up to the lesser of (i) 80% of the Compensation Protection amount or (ii) 7.5% of the Base Compensation.
Advance to be paid prior to November 1st and deducted from the first installment of Base Compensation due (and deducted from future installements if necessary)
Amending to Minimum Salary
A Contract is automatically amended on July 1st to ensure a Player’s Salary is not less than the applicable Minimum Salary.
Maximum Salary
Maximum Salary Generally
Regardless of any other rule allowing a Player to sign for a certain amount, the amount will always be adjusted down to his applicable Maximum Salary below.
A Player’s Maximum Salary depends upon his YOS and whether he reached the Higher Max Criteria. If he hits the Higher Max Criteria he jumps to the next percentage bracket, often called a “Supermax.”
Note that Maximum Salary refers to Salary plus Unikely Bonuses
Higher Max Criteria
Below are the conditions that can be met to reach the Higher Max Criteria:
- The Player either makes All-NBA or is the DPOY in (i) the immediately preceding season or (ii) in 2 of the 3 prior seasons; or
- Named MVP in 1 of the prior 3 seasons.
Note that a Rookie Scale Extension can condition the increase in percentage on hitting the Higher Max Criteria after signing the Extension in the 4th year before the extended term starts. However, the Veteran Extension requires the Higher Max Criteria be reached before the signing of the Extension.
Keep in mind, to receive the above League Honors, a Player must reach Minimum Game Threshold. If not, the Player is excluded from receiving the League Honor.
Maximum Amount
Below is the Maximum Salary + Unlikely Bonuses a Player can receive based upon his YOS.
| 1 to 6 Years of Service | ||
|---|---|---|
| Standard Maximum |
Higher Maximum |
Criteria for Higher Maximum |
| 25% | 30% |
|
| 7 to 9 Years of Service | ||
| Standard Maximum |
Higher Maximum |
Criteria for Higher Maximum |
| 30% | 35% |
|
| 10+ Years of Service | ||
| Standard Maximum |
Higher Maximum |
Criteria for Higher Maximum |
| 35% | N/A | N/A |
Amending an Extension with Maximum Salary
Oftentimes a Contract is signed at a time when the Player’s Maximum Salary in the future is not known, and has to be adjusted.
The Player’s Salary will be adjusted on July 1st to equal the Maximum Salary. The following categories will be reduced in the following order until the Maximum Salary is reached:
- Signing Bonus – The Signing Bonus will be reduced first. Signing Bonus for the future seasons is reduced on a pro rata basis.
- Incentive Compensation – Any Incentive Compensation will be reduced second. Future seasons will be amended to abide by maximum increase/decrease limitations.
- Base Compensation – Base Compensation will be reduced last. Future seasons will be amended to abide by maximum increase/decrease limitations.
Increase and Decrease Limitations
Percentage Limitation
Generally
Below are the limitations based upon the Transactions executed:
| Transaction | Percentage Limitation |
|---|---|
| Full Bird or Early Bird Free Agents | 8% |
| All Other Free Agent Signings | 5% |
| Sign-and-Trades | 5% |
| Extend-and-Trades | 5% |
| All Other Extensions | 8% |
| Renegotiations | 8% |
| Maximum Qualifying Offer | 8%* |
| *8% raises required | |
The 8% increase/decrease is not available if a Team uses another Exception to sign a Player even though Full or Early Bird Rights are available.
A Team has Early Bird Rights to a Player, but 175% of his Prior Salary is less than his value. The Team therefore uses the NTMLE to sign him to a $14 million starting Salary. Since the Team used the NTMLE, the increase/decrease limitations are 5%, rather than the 8% permitted if Early Bird Rights were used.
Calculation
The maximum increase/decrease is a fixed amount determined by calculating the percentage of Year 1. It is not compounded over future years.
In 2025, Mikal Bridges received a 4-Year, $150 million Extension with the Knicks. His Year 1 Salary was $33,482,145 and he received his maximum raise of 8% ($2,678,571) each Season to reach the $150 million total.
If an Extension is signed stating that Year 1 Salary is based upon a percentage of the Salary Cap, then the annual increase/decrease can also state the percentage rather than a specific dollar amount. The Contract will then be amended to the fixed amount on July 1st of the extended term when the amount is known.
Limit Each Compensation Type
The increase/decrease limitations are broken into the following Compensation types:
- Salary, exclusing Incentive Compensation;
- Regular Salary;
- Incentive Compensation – Each individual bonus may only be increased/decreased by the applicable limit;
- The criteria for earnning any Bonus must also be unchanged from year to year.
The rule means that you look at increase and decrease limitations within each Compensation type rather than as a whole. Therefore, if a Player receives $10 million in Regular Salary in Year 1 with $2 million in Performance Bonuses with 5% maximum raises, then you apply the 5% to $10 million Regular Salary and 5% to the $2 million Bonuses separately, rather than a combined $12 million.
Without splitting Compensation types for the increase/decrease limitations a Team can manipulate Team Salary year to year. For example, a Team can offer $20 million in Base Compensation with $2 million in Unlikely Bonuses (which don’t count toward the Salary Cap) in Year 1, then in Year 2 increase Regular Salary to $23,100,000 (5% of all Compensation) while dropping Unlikely Bonuses to $0.
Decreases Prohibited in Option Years
If there is an Option Year in a Contract, the Player’s Salary (less Incentive Compensation), Likely Bonuses and Unlikely Bonuses cannot be less than the prior year.
Contract Length
The minimum and maximum Contract length will depend on the Transaction type and the Exception used, if applicable.
Below is a full list of all CBA rules that require a minimum of maximum term length.
If one of the rules below do not apply, then the maximum term length is 4 Seasons.
Note for Extensions, count 1 full Season for the year the Contract is being signed, even if the Extension is signed on the last day of the Salary Cap Year.
| Signings | ||
|---|---|---|
| Signing Type | Minimum Years | Maximum Years |
| Rookie Scale Contract | 4 (including 2 Team Options) | 4 (including 2 Team Options) |
| Later-Signed 1st Rd. Picks | 3 (excluding Option Year) | 4 |
| Qualifying Offer | 1 | 1 |
| Maximum Qualifying Offer | 5 | 5 |
| Offer Sheet | 2 (3 if Maximum QO offered) | 4 |
| Two-Way Contract | N/A | 2 |
| 10-Day Contract | N/A | 10 days; or 3 games played |
| Extensions | ||
| Extension Type | Minimum Years | Maximum Years |
| Rookie Scale Extension | 5 (if Salary > 25%) | 6 |
| Veteran Extension | N/A | 5 |
| Designated Veteran Extension | 6 | 6 |
| Trades | ||
| Trade Type | Minimum Years | Maximum Years |
| Sign-and-Trade | 3 (excluding Option Year) | 4 |
| Extend-and-Trade | N/A | 4 |
| Exceptions | ||
| Exception Type | Minimum Years | Maximum Years |
| Full Bird | 1 | 5 |
| Early Bird | 2 | 4 |
| Non-Bird | 1 | 4 |
| Disabled Player Exception | 1 | 1 |
| Bi-Annual Exception | 1 | 2 |
| NTMLE | 1 | 4 |
| TMLE | 1 | 2 |
| Room MLE | 1 | 2 |
| Minimum Exception | 1 | 2 |
No Future Contracts
Every Contract must cover at least the then-current (or upcoming Season), and a multi-year Contract cannot skip Seasons.
No Decrease in Salary
A Team and Player may not negotiate a decrease in Salary or Incentive Compensation covered by an existing Contract.
However, Compensation Protection may be reduced (via a Buyout) and an Option Year can be declined and the Salary can then be reduced in the same Season of the declined Option Year.