The minimum salary exception is the most frequently deployed tool for NBA teams that are already over the cap but still need to sign or acquire players. The rule lets any capped-out club offer one- or two-year contracts at the league’s minimum salary without using other exceptions or cap space.
Who Qualifies and What It Pays
Minimum salaries rise with a player’s years of service. In 2025/26, a newcomer was eligible for $1,272,870, while a veteran with at least 10 seasons could earn $3,634,153. The figures adjust annually in lockstep with the salary cap; a 5% cap increase triggers an identical bump in minimum pay. Projected numbers for 2026/27 are based on a forecasted $166 million cap.
Unlimited Use, League Reimbursement
Unlike the mid-level or bi-annual exceptions—which can be exhausted—clubs may invoke the minimum salary exception as often as needed during a league year. To prevent high veteran rates from discouraging signings, the NBA reimburses teams for part of any one-year minimum deal given to a player with three or more years of experience. For example, when the Sacramento Kings signed 17-year veteran Russell Westbrook ahead of 2025/26, he received $3,634,153, but the Kings were charged only $2,296,274 (the two-year veteran minimum). The league covers the $1,337,879 difference.
Players Added by Trade or Waiver Claim
Teams can also use the exception to trade for or claim a minimum-salary player, provided the contract is no longer than two seasons and never exceeded the minimum in a prior year. When Utah waived Vince Williams Jr., he was in the third season of a contract that had topped the minimum in year one, making him ineligible to be claimed with this exception.
Proration After Opening Night
Salaries and cap hits prorate daily once the regular season begins. Killian Hayes (five years of service) signed with the Kings on March 15—the 146th day of a 174-day season—and earned 29/174ths of his $2,667,947 full-season minimum, or $444,658.
Cap charges shrink the same way. When Tyus Jones joined the Denver Nuggets on March 5, 39 days remained in 2025/26. He pocketed $814,552 (39/174ths of $3,634,153), while Denver’s cap hit was $514,682 (39/174ths of $2,296,274).
Two-Year Minimum Contracts
A two-year minimum deal locks in year two at 105% of the first-year minimum for a player with the same service time. A rookie who signs such an agreement in 2025/26 is guaranteed $2,150,917 in 2026/27—5% above the 2025/26 minimum for a one-year player.
Notable Recent Uses
The Milwaukee Bucks showcased the exception’s flexibility last offseason, adding Gary Harris, Taurean Prince, Jericho Sims, Thanasis Antetokounmpo, Cole Anthony, and Chris Livingston. During the season they used it again to sign Cam Thomas for the remainder of the year.
Additional Provisions
- Contracts signed with this exception may include trade bonuses but no incentive bonuses. A player must waive any trade bonus to be moved under the same exception.
- When a minimum-salary player is dealt, league reimbursements are split between teams based on days served with each club.
- Every 10-day contract pays a prorated minimum; the NBA subsidizes a portion for veterans with at least three years of experience.
- A team at the hard cap cannot use the exception if the signing would push payroll above that limit, except for Exhibit 9 or Exhibit 10 deals inked before opening night.
The minimum salary exception remains the league’s safety valve, ensuring full rosters and providing veterans and rookies alike a pathway to contracts even when a team’s cap sheet is crowded.
Source: Hoops Rumors
