Jon Hamm has signed a new contract, earn more than $250,000

Jon Hamm, the 40-year-old actor whoi who plays the 1960s advertising executive on AMC's Emmy Award-winning show, has signed a new contract with series studio Lionsgate Television Group.

The actor will receive a substantial raise for the upcoming fifth season of the drama about a Madison Avenue advertising agency. By the contract's final year, he'll earn more than $250,000 an episode, Variety.com reported, citing unidentified sources.

Series creator Matthew Weiner signed a contract in March for a sixth season and a possible seventh. Weiner's protracted negotiations delayed the show's return from this year to early 2012.

Hamm has been nominated four times for a Golden Globe - he won once in 2008 - and three times for an Emmy. He was awarded a television industry Critics Choice prize for Best Actor in a Drama on Saturday.