An NBA veteran’s minimum salary depends on how many years of NBA experience a player has.
Example: For the 2023-2024 season, if a player with 10 years of NBA experience signs a 1-year minimum contract, he will be paid $2,905,851.
Read on for more details about NBA vet minimums, including:
- Minimum salary by year / experience
- What is considered a “veteran” in the NBA?
- Veteran pay over the years
- NBA salary cap implications
- and more..
Let’s get started!
What is the NBA veteran minimum salary?
NBA veteran minimum salaries are paid according to the official NBA Minimum Salary Scale.
Here are the amounts from the most recent NBPA Collective Bargaining Agreement (CBA):
NBA Minimum Annual Salary Scale
| Contract Year → Experience ↓ | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| 0 | 1,017,781 | ||||
| 1 | 1,637,966 | 1,719,864 | |||
| 2 | 1,836,090 | 1,927,896 | 2,019,699 | ||
| 3 | 1,902,133 | 1,997,238 | 2,092,344 | 2,187,451 | |
| 4 | 1,968,175 | 2,066,585 | 2,164,993 | 2,263,403 | 2,361,812 |
| 5 | 2,133,278 | 2,239,943 | 2,346,606 | 2,453,270 | 2,559,934 |
| 6 | 2,298,385 | 2,413,304 | 2,528,221 | 2,643,140 | 2,758,060 |
| 7 | 2,463,490 | 2,586,665 | 2,709,839 | 2,833,013 | 2,956,189 |
| 8 | 2,628,597 | 2,760,026 | 2,891,458 | 3,022,889 | 3,154,319 |
| 9 | 2,641,682 | 2,773,765 | 2,905,850 | 3,037,934 | 3,170,018 |
| 10+ | 2,905,851 | 3,051,144 | 3,196,438 | 3,341,730 | 3,487,023 |
How to read this chart:
First, look at how many years a player has been in the league (i.e. “Experience” column).
Players are credited with a “year” of service for each year they are on an NBA team for at least one day during the regular season. This includes players that were on 10-day contracts, Two Way contracts, as well as those who were only on the Inactive list.
Next, look at what year of the contract the player is in.
Here’s a simple example:
A player with 6 years of NBA experience signs a new 3-year minimum contract. In the first year of his contract, he will be paid $2,298,385 (i.e. 6 years experience, contract Year 1). In the last year of his contract, he will be paid $2,891,458 (i.e. 8 years experience, contract Year 3 ).
Recent Veteran minimum signings
Here are some recent examples of players who have signed veteran minimum contracts:
- Patrick Beverly and Mo Bamba with Philadelphia 76ers
- Cory Joseph and Dario Saric with Golden State Warriors:
- Cam Reddish with LA Lakers
- Aaron Holiday with Houston Rockets:
What is a considered a veteran in the NBA?
How old do you need to be to be considered a “veteran” in the NBA?
Here’s the official definition from the CBA:
“Veteran” or “Veteran Player” means a person who has signed at least one Player Contract with an NBA Team.
(from Article I, Section I)
So, any player that has had at least one NBA contract (no matter the length) is considered an NBA veteran. A 22-year old can be considered a “veteran” as long as he has played through one contract.
Speaking of age…
Do veterans make less or more? Average pay by age
In my recent average NBA salary article, I analyzed the average pay by age in the NBA. Here were the results (from 2022-2023 season):
| Age | Average Salary | Median Salary | No. of Players |
|---|---|---|---|
| 19-22 | $4,094,674 | $3,144,900 | 110 |
| 23-26 | $8,764,558 | $3,901,399 | 153 |
| 27-30 | $12,253,097 | $9,077,500 | 110 |
| 31-34 | $17,434,942 | $12,080,373 | 63 |
| 35-38 | $12,511,458 | $6,184,500 | 17 |
| 39-42 | $1,836,090 | $1,836,090 | 2* |
From these results, you can see that on average, older players make a lot more compared to younger players. Players aged 31-34 are the highest paid. Players over 39 years old technically make the least, but there are only 2 of them (Iguodala and Haslem).
Veteran Minimum Contracts History & Adjustments
The NBA minimum salary is adjusted every season based on the salary cap.
So, if the salary cap increases 5% next season, then the minimum salary will also increase by 5%.
Veteran Minimum Increase Over The Years
How much has the minimum salary increased over the years?
Here is data from Sportac since 1995.
Since 1995, the minimum salary for a 10-year veteran on a one-year contract has increased about 11 times, or 1100% !!!
I would take that pay raise any day.
In comparison, the average NBA salary has only increased about 800%
Salary Cap Impact: Does the NBA veteran minimum count against the cap?
So why would a team ever sign a 10-year NBA veteran if they need to pay him $1,000,000 more than a player with 2-3 years of experience?
Well, there’s leadership, playoff experience, mentoring young players, etc.
But, if a team has a cheap-ass owner like Donald Sterling, then they would definitely only want to sign less experienced players to save money.
To prevent this, the NBA actually reimburses teams for signing NBA vets.
To qualify for reimbursement, the player signed must have three or more years of NBA experience, and the contract can only be short-term (1 year, 10-day or Rest-of Season).
Teams are reimbursed for any amount over the current two-year minimum salary.
Example: A 10-year veteran signs a one-year minimum contract. He should be paid a minimum of $2,905,851. The team will only need to pay $1,836,090, and the league will pay the remaining amount from a league-wide fund.
Only the two-year minimum amount counts against the salary cap.
The team can then use that extra money to sign other players if needed.
Other Veteran Salary FAQ
What is the veteran minimum exception ?
Usually, a team can not sign a player if the contract takes them over the salary cap. There are some exceptions to the rule, though. One is called the “Minimum Player Salary Exception”.
Basically, a team can offer a player a minimum salary contract, even if it brings them over the salary cap. The contract can only be for a maximum of 2 years.
What is the veteran maximum contract?
The maximum salary a player can make is based on experience and the salary cap.
The salary cap for 2023-2024 is set at $136.021 million.
Here is a general maximum salary guide:
| Years in NBA | Maximum salary % | 2023-24 |
|---|---|---|
| 0 – 6 | 25% of salary cap | $34,005,250 |
| 7 – 9 | 30% of salary cap | $40,806,300 |
| 10+ | 35% of cap | $47,607,350 |
There are a few exceptions to this general guide rules, which allow a player to make over the maximum.
That’s why Steph Curry can make $51 million in 2023-2024. 💰
What is a “Designated Veteran Player”
The “Designated Veteran Player” is a player that is signed to a “Designated Veteran Player Contract” or “Designated Veteran Player Extension”.
Basically, this allows the team to pay a player with less than 10 years experience more than the amount stated in the Maximum Salary guide (above). For example, players with 7-9 years of experience can be paid 35% of the salary cap (instead of just 30%).
What is the Average NBA Salary?
The average NBA salary in 2022-2023 was around $8 million.
How much do rookies make in the NBA?
The minimum rookie salary for the 2023-2024 season is $1,017,781.
First round draft picks (if signed) are paid according to the Rookie Salary Scale.
Click here for more info about rookie and minimum salaries.
Summary
It really pays to stick around in the NBA. A 10-year veteran makes a minimum of nearly $3 million!
What do you think of the NBA veteran minimums?
Who’s the best vet on your favorite NBA team?
Let me know in the comments below:
