The NBA and National Basketball Players Association (NBPA) came to an agreement on Friday to cut player salaries by 25 per cent from May 15.
The reduction will be the first faced by NBA players since the league shut down on March 11 due to the coronavirus outbreak.
Players will be paid in full on May 1 as the last payment under a 60-day promise by the NBA to delay reducing their compensation.
The reduction is expected to save teams a total of $40million per pay period.
"Through this agreement, and in order to provide players with a more gradual salary reduction schedule, partial reductions of 25 per cent will begin with the players' twice-a-month payment due on May 15," the NBA said in Friday's news release.
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The statement appeared to indicate that more severe cuts could be coming down the line.
A total of 259 regular season games remain on the schedule, and while the likelihood of them being played decreases by the day, none have officially been cancelled. The playoffs were originally scheduled to begin Saturday.
The collective bargaining agreement includes a "force majeure" clause, which allows the league to cut salaries in the event of an extraordinary, unforeseen circumstance, like a natural disaster or pandemic. In such cases, the NBA is allowed to reduce a player's total yearly salary by 1.08 percent for every game cancelled.
