how to determine pastor salary

The 2020 End of Year sale is happening now! Operate with a mentality of “how can we pay our pastor as high as possible, demonstrating over-the-top generosity.”. Then go to work to create the range within which you can pay your pastor. The fair rental value of the home, including furnishings, utilities, garage, etc. Whenever possible put the money in an after-tax retirement account. The Pastor would receive a w2 which lists $6,000 in box 1; any federal withholding in box 2; and the housing allowance (labeled as such) of $18,000 in box 14. Compensation Handbook for Church Staff is another outstanding tool I’ve used for years. The spreadsheet attachment has used a cost of living calculator to determine what the minimum base salary would be in various locations across the country where ABC-USA congregations are located. Consider location when determining a pastor's salary. This is a great addition to my post of Feb 2017. By far, more churches use the pastor's previous salary as … At that point, I ask why the church board would want to pay their pastor average if the pastor is above average. I hope this is not confusing to you. In other words, in an example where the pastor should be paid $100,000, you want a range of $90,000 – $110,000, not a range of $50,000 to $150,000. They are, however, taxed for social security and Medicare purposes. The 2018 book is currently sold out, but 2019 and 2020 research should be available soon. Pastoral Compensation As a church plant I know it’s incredibly important to invest in leadership development.”. By far, more churches use the pastor's previous salary as … The best church boards do this with diligence and a great sense of generosity. Housing Allowance Then I recommend building in an acceleration of this match all the way to a 10/10 match. To eliminate stress as you begin to write sermons. Normally, pastors receive a w-2 at year end, even though there may not be amounts shown in the federal w/h, state w/h, social security and Medicare boxes. Pastor Salary Guidelines. Finally, it would be great to get input regarding other church staff positions. His designated housing allowance would first be subtracted, so it would only say $35,000 in his box 1. The pastor knows they are not putting it on the agenda to be self-serving, rather they are abiding by the wishes of the board in putting it on the agenda. 150 to 300 members – $58,357 to $139,000. The number one reason pastors don't leave to retirement when they should, is they can't afford to. Some church staff members even make below minimum wage—including child-care workers (14.8% are paid below minimum wage) and custodians (6.3% are paid below minimum wage). So a good guideline to follow is to pay him a starting salary a little above the average household income of the people in your church. The pastor's salary at the previous church. Again, as I stated earlier, the way you treat your pastor in this arena of compensation, will in large part determine how the Lord responds to the financial and temporal needs of the church itself. Certainly, the traditional group health insurance options are out there. Add 1250 before you add 250. Churches often struggle to determine pay levels for their pastors and staff. And their annual salary … The number one reason pastors don’t leave to retirement when they should, is they can’t afford to do so. These situations would account for the lower end of the national average (creating the overall average pastor salary of $49,837). As a church board, you need to approve the request of the pastor for their housing allowance allocation prior to the year it is paid. Certainly, if it’s possible for the church board to work with the pastor in building a church board calendar, then certainly do so. Location, Location, Location. For example if you find the pastor is getting up into the 90-100 percentile of pastors’ compensation, to be able to do a year-end bonus that may be equal to what a raise would have been is good for the pastor, the church board and the church, but it doesn’t obligate the church for more in years to come. By far, more churches use the pastor's previous salary as benchmark to establish the new salary. Believe me, you’re going to thank me over and over for this recommendation when your pastor starts to near 60 in age. Get access to more than 300 videos and training material to level-up your leadership and improve your ministry skills. The second comparisons made are local to your community. Today, we’re going to dissect the issue of a pastor’s salary and benefits; how to set it and establish the best possible compensation for the pastor. When I hear that I typically respond with questions of my own, “Do you have an average pastor?” or “Do you want an average pastor?” The answers to those questions are always, “No!” Board members acknowledge their pastor is above average and that is certainly what they want in their pastor. 5/5 in year one, 6/6 in year two, 7/7 in year three, etc. A church pays their pastor a salary of $34,000 in 2000. If the CRC in the US does the same to calculating pensions as the CRC dies in Canada then my point is even more valid. This is a great addition to my post of Feb 2017. A Guide for Determining Pastor’s Salary. I am offering these five approaches from an informational perspective rather than evaluating them. A licensed, commissioned, or ordained minister is generally the common law employee of the church, denomination, sect, or organization that employs him or her to provide ministerial services. I agree with your numbers. Be sure Sundays are clearly defined in vacation and sick leave. Since the vast majority of churches in the U.S. are small, the overall compensation package for Protestant pastors is low when compared with teachers and social workers. Board members need to put the “annual time to review the pastor’s compensation” on their personal calendars and have the church secretary or board secretary put it on the church calendar. However, there are some exceptions, such as traveling evangelists who are independent contractors (self-employed) under the common law. Your church’s accurate report of parsonage value helps MMBB determine death, disability, and retirement benefits An accurate parsonage rental value does more than help a pastor save on taxes. It clearly shows the separation between salary and housing allowance. The salaries of pastors in the U.S. is largely affected by church size. All told, according to Doug Self’s calculations, the typical pastor should get a yearly salary of about $157,500. 300 to 500 members – $68,591 to $156,217. I hope you’ve found this blog helpful in setting the compensation for your pastor. There are couple of things to be cautious of when using these kinds of resources. Ministry Pay is a web-based site that allows the board to put in the specific demographics related to the church such as church size, budget, area of the country, etc. Another thing, I’ll sometimes hear from church boards relative to compensation is the question, “What’s average?” when thinking of how to pay the pastor. All rights reserved. This may seem like a lot, but you’ll really be unbelievably glad you did this when your pastor starts nearing the end of their ministry. Their website is: Using Ministry Pay, here’s a sample of a church in the upper Midwest where I ran the numbers for them; church of 1700 in a city. 50 percent of pastors receive compensation under $50,000 per year, even though many of them have advanced degrees. I recommend starting by creating a 5%/5% matching fund retirement plan for your pastor. Average pastor’s salary in Chicago: $101,987; Average pastor’s salary in Los Angeles: $108,283; Average pastor’s salary in NYC: $115,849; These numbers indicate that some full-time pastors could be making quadruple what other full-time pastors make in the same country, determined solely by the cost of living. I don’t necessarily suggest that you have to do this publicly every time you turn around. Note: Your church would be a pretty unusual church if you had all the money in the world and could keep throwing bunches of it at your pastor. The spreadsheet attachment has used a cost of living calculator to determine what the minimum base salary would be in various locations across the country where ABC-USA congregations are located. Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. A church pays their pastor a salary of $34,000 in 2000. A starting point for any church board in the area of compensation is to talk about and cultivate a spirit of generosity. You’ll be able to move them out the door without feeling like you’re kicking Grandpa to the curb! So, do this add-on once and you’ll be good to go. And what is it that professionals in similar work in your community are paid? Church polity also impacts the size of pastors’ salaries. This comes naturally for some boards. In other words, in an example where the pastor should be paid $100,000, you want a range of $90,000 – $110,000, not a range of $50,000 to $150,000. Nearly 80 percent of pastors serve in congregations with fewer than 200 people, and 55 percent have fewer than 100 people in their church. Another way bonuses really work well is when the compensation of a pastor moves to the higher end of the compensation range of other pastors. In short, the dollar amounts in these areas can be nice but need not necessarily be overwhelming. This is an area where the thought is truly what counts. Also, many churches use some combination of these factors. Determine the starting place for a fair ministry salary by calculating average monthly mortgage/rent in your area and multiplying by four. And those in ministry aren't always sure how their pay compares. Let me describe how this works. Also, go to https://www.churchlawandtax.com/ for more information on this subject. It always made me think the next preacher was going “well, you paid so-and-so X dollars salary, plus Y dollars to medically support a child– why can’t you add X and Y together and pay me that? At the time, I thought it was a bit low, and I complained that this wasn’t fair, because teachers only had to work 9 months and got summers off. Because they are public employees, their full compensation is available in City government and School Board minutes, which are open to the public. The business world deals with a similar problem. This might be new for you but literally, if the year is 2019, you can create a chart that sets the pastor’s salary for 2020, 2021 and 2022 right now. Determine the starting place for a fair ministry salary by calculating average monthly mortgage/rent in your area and multiplying by four. Just instruct the bookkeeper/treasurer of the decision of the board. Church Board Members: Disagreeing without Drawing Blood? The first benefit that should be a staple for the church in taking care of their staff is that of providing health insurance. The second benefit I recommend is that of retirement. The pastor needs to submit in writing their request for housing allowance. However, housing allowances complicate things. While the church hopefully did give the pastor a raise last year, that was then, this is now. To identify and implement 5 key sermon starters. Let me be clear. How to Know You’re Making the Right Decision, “Really appreciate the session notes in the 5-Day Leadership Challenge for Pastors to use as we listen. I was glad to be off that committee. Of course a few high visibility megachurch pastors are making a … Need a kickstart for your sermon planning? requirements. Even if it is USA info the separation of income is telling. Don’t make the pastor have to ask for a raise! The National Association of Church Business Administration reported that as of 2012, the average U.S. pastor makes about $28,000 per year. With this standard in mind, if housing costs are $1,800 per month, a starting place for a salary would be $7,200 per month. 501 to 1,200 members – $84,270 to $184,025. Privacy Policy Terms and Conditions. I am pleased to note that I regularly work with church boards that really want to do this right. So as we go through this material, if you’re a board member, I encourage you to be thoughtful and diligent in what you can do to take care of the temporal needs of your pastor. The wise and discerning church board will do all it can to create as tight a range as possible to dial in where their pastor should be paid. Should the pastor’s actual expenses be lower than the amount allocated by the church board for housing, then the difference of the actual and the housing allocation is moved over to ordinary income for the pastor when they do their personal taxes. Growing churches are led by pastors and church boards that are generous beyond measure. With this standard in mind, if housing costs are $1,800 per month, a starting place for a salary would be $7,200 per month. For lots of churches this would be in November, prior to the start of the new calendar year. For example, you might offer a higher base salary if the pastor has earned his Master of Divinity versus only a bachelor's degree. Further, when a church cannot follow the admonition to care for the poor and downtrodden, it cannot expect the Lord to come through for it when it is doing other ministry. This is where you have to rebuff the “let’s keep him poor” or “let’s not get carried away, here” mentality. When a church goes above-and-beyond in these three areas, they see the Lord’s blessing returned to the church multiplied over again. Discover the 5 things that will propel you to the next level as you sit down to write your sermons. To develop your best strategy for starting sermons. I suggest putting in the minutes that the pastor and the board are to put this issue automatically on the board agenda in the month where you prepare compensation or the month before. Pastor Salary Guidelines. And for administrative services, a grade-school principal makes $20 per hour. Therefore, they need to have a provision for the pastor to do so without any infringement on personal vacation time. While the Bureau of Labor Statistics lists the average salary of clergy, which includes pastors, at $48,290 annually of 2010, this also reflects salaries of clergy for other religious groups such as Buddhists, Catholics, and Muslims. Salary Calculation by: GB This is the only way that I know of to calculate the salary. Copyright © 2020 Leaders.Church. Dave Ramsey, argues that a mortgage payment should not exceed 25% of take-home pay. How can a fair, equitable salary for pastors be determined? Step 1 Recommended Minimum Salary for 2011 (including Housing)$ 41,000.00 Step 2 Calculate adjustment based on Church's Annual Budget. In this article, I offer the five most common ways churches establish the pay level of a pastor. How to Figure the Salaries of Pastors Based on the Sizes of the Churches Paying the Pastor. It is the board’s responsibility to make sure the church is not stuck in this way. When possible, it is advisable to get a key man life insurance policy on the pastor. So, just because you really did it well last year, you still need to keep coming back year after year to revisit it. Over 1,200 members – $92,255 to $189,053. Benefits. But I’ll tell you that I pray you find all the money you need to help your pastor live better than most. Your sermon-writing ability will grow exponentially. So, at the end of the day, church board, take extra special care to take great care of your pastor in their salary and benefits. That means in 2019, the pastor’s salary should be just over $48,000 to have equal value. And when it comes to paying the pastor, I don’t hear this often, but sometime a church board can fall prey to the “let’s keep the pastor poor” mentality. https://store.churchlawandtax.com/2018-compensation-handbookfor-church-staff-compensation-reports-now-available-at-churchsalary-com/. I find it best to approve housing allowance in November for the coming year, if you are operating on a calendar year. In that case, go with the larger of the two vacation amounts. Your church reports this value, along with cash salary and utilities, to MMBB for … I read them to get some fresh information that will correspond to my You want the pastor’s spouse covered in the event of the pastor’s death because the membership of the church will be expecting the church board to take care of the grieving spouse. October is normally considered Pastor Appreciation Month at least in the U.S., so someone really needs to pay attention to this. In doing their research, there are two comparisons of the “Right” salary. The pastor’s salary at the previous church. Believe me, if you take care of this when a pastor is in their 30s and 40s, you won’t find yourself stuck with an aging pastor you can’t get out the door when they hit their 60s and 70s. Lots of times a church finds itself behind that number. Manfred Holck, Jr. In that case, don’t worry. Your email address will not be published. This comes with the territory of board leadership. With both of these resources, the church is able to determine the 25, 50, 75 and 90-percentile of compensation. After salary and housing allowance are provided for, what benefits are appropriate? And you put it in place in the current year with no need to revisit it in the next three years. This policy would pay out in event of the death of the pastor to the church and the pastor’s spouse in some proportion. The church board needs to initiate this. The consumer price index for the Midwest region in January 2000 was almost 165. The wise and discerning church board will do all it can to create as tight a range as possible to dial in where their pastor should be paid. I have noted in previous posts some resources that could help your church to offer your pastor a fair salary. According to a Duke Divinity School study, connectional churches—such as Presbyterian or Lutheran—pay their pastors more than congregational churches, such as Baptist or United Church of Christ.. [email protected] This Pastor is 40 years of age, married and has 2 teenage children. If the church board is not currently doing this, then to start would mean you would need to increase your pastor’s compensation by 5% so they would have that 5% amount to contribute back to the retirement account. Any board that does that is charting the course for the church to decline, plain and simple. As such, pastors of churches with congregations of 300 people earn less than $28,000 annually as of publication according to a Crown Financia… If you receive as part of your salary (for services as a minister) an amount officially designated (in advance of payment) as a housing allowance, and the amount isn’t more than reasonable pay for your services, you can exclude from gross income the lesser of the following amounts: I recommend the church board set the pastor’s housing allowance on the high side in order for the pastor’s actual expenses to not exceed the housing allowance, in which case they would forfeit the housing allowance tax benefit on that portion higher than the board allocation. You’ll find the tighter you can keep the range, the closer to a correct number will be paid to your pastor. ChurchSalary features the largest church-specific compensation database available anywhere. A Guide for Determining Pastor’s Salary. I covered the first set of comparisons above, in talking about Ministry Pay and the Compensation Handbook. Normally, that turns a lightbulb on in their minds. An entry-level Senior Pastor with less than 1 year experience can expect to earn an average total compensation (includes tips, bonus, and overtime pay) … How do you define such a vital role? I can tell you one thing for sure; it is almost universal that this is an uncomfortable subject for pastors. On the nuts and bolts of how much to pay the pastor, I recommend compensation for pastor move to the 75-percentile level of compensation of all lead pastors. But it is important to take care of these special times. I would also appreciate input about other ways your church determines the pastor’s salary. Now, let’s take some time to talk about how taxes and housing allowance really work. More than 25,000 pastors and church leaders are connecting with resources just like this. In this calculation, the church should shoot for a total package compensation of $180,773 but would operate with a range of $157,359 – $180,773. You’ll also receive weekly emails with our best content to invest in your ministry. Wondering where to start? The third benefit a church board should provide is annual vacation and sick leave. The church pays the utilities (which they should) that amount to $2,800 per year. Required fields are marked *. Your church reports this value, along with cash salary and utilities, to MMBB for … (615) 669-8201. The salaries of pastors in … Topping the list is New York, with New Hampshire and Vermont close behind in second and third. 0 to 150 members – $4,800 to $109,000. In this way, the pastor knows, everybody knows, that it automatically goes on the agenda to review the pastor’s compensation. I’ve found in most cases I end up adding both of them to get the sufficient sampling size. Using the same parameters these are the 5-year average results from the Compensation Handbook for Church Staff. A pastor’s leadership builds a church’s ministry, and a pastor’s compensation reflects in part a church’s commitment to quality ministry. No commitments. Fair pay in staff compensation—the largest portion of the church budget—is good stewardship. With more online, real-time compensation data than any other website, Salary.com … If you’re not a math person, the 75-percentile would mean that 75% of pastors are paid less than the 75-percentile point and that 25% of pastors are paid more than the 75-percentile. Female pastors earn about 20 percent less than male pastors with similar levels of experience and education, according to MMBB Financial Services, formerly the American Baptists’ Ministers and Missionaries Benefit Board. What is it that pastors nationally, regionally, etc. No contracts. 10 Steps to Navigating Change with Your Church Board. Then go back and forth until you feel you have a large enough sampling. A pastor is called of the Lord to ministry, certainly not a high-paying profession. If you are behind the 8-ball on this issue, here is how to do catch up. When putting both sets of results together, this is the compilation which gives you the range from 50 percentile to 75 percentile. There are two important considerations to keep in mind with respect to staff salaries—the amount of the salary, and the use of "salary reduction agreements." When I became a pastor in 1998, working in a large church with 10 pastors, my church based a new pastor’s starting salary at the same level as the starting salary of public school teachers. How are salaries determined for ministry leaders in your church? Bundles up to 75% off and courses as low as $70! Use the current year's total budget (2010) to determine the figure to be used. These factors all have their strengths and their weaknesses. Here’s another question that comes up frequently, “Are Bonuses Legal?”. Others will simply say, “If you’re sick, stay home.”. Yes, you can do that. The median annual budget of churches surveyed was $125,000. Honestly, I guess such posts should be printed The pastor's salary at the previous church. The average Pastor salary in the United States is $98,420 as of November 25, 2020, but the range typically falls between $80,880 and $111,536. Common Church Staff Salary Breakdown. Here are some other helpful blogs you might find of interest for the pastor and church board member: Click here to get immediate access to this free masterclass. Put in a clear statement of sick leave. But for others, it’s a stretch to get to the level of generosity they need to be. In this scenario, with the pastor at $60,000 in 2019, I would set the pastor at $75,000 in 2020, $90,000 in 2021 and $105,000 in 2022. Bonuses put money in the pastor’s pocket but don’t increase the base of compensation. If the church is a cheapskate in supporting missionaries, it can forget about manifold blessings from the Lord for it to do week-in and week-out ministry. With nearly 40 years of ministry experience, Thom Rainer has spent a lifetime committed to the growth and health of local churches across North America. Sometimes a church wants to bless their pastor for something special or as a reward or thank for having walked through a particularly challenging time, such as a major building project. For our pastor in the above example, even though he gets paid $40,000 a year, that’s not what it would say in box 1 of his W-2. By far, more churches use the pastor’s previous salary as … A pastor’s leadership builds a church’s ministry, and a pastor’s compensation reflects in part a church’s commitment to quality ministry. These were the results of the participants in this survey that came close to matching those parameters. (Note, I am not a financial advisor so seek financial and legal counsel on this issue.). Cancel anytime. It is, frankly, a great privilege to be the Lord’s instrument in caring for the financial needs of the servant of the Lord to your church, called your pastor. As an alternative method of determining your pastor's salary, you might want to pay him approximately what the local high school principal earns. For the church board’s information, housing allowance is a wonderful blessing of the U.S. federal tax system whereby, amounts spent on housing for a pastor are exempt from federal income tax. This is a primary role of the church board to take care of the compensation of the pastor. Maybe use the first five years of their ministry with you to increase 1% per year i.e. The pastor's salary at the previous church. There are also options to do health sharing plans like Medi-Share, Liberty Health Share, etc. The church board wants their pastor to be in demand to do outside ministry. Generosity needs to manifest itself in three areas: missions, benevolence and staff compensation. Manfred Holck, Jr. gives some practical guidelines. Vermont beats the national average by 7.5%, and New York furthers that trend with another $6,478 (17.0%) above the $38,041. It’s very rare that I hear this, but it sadly is still out there today. For our pastor in the above example, even though he gets paid $40,000 a year, that’s not what it would say in box 1 of his W-2. Your church’s accurate report of parsonage value helps MMBB determine death, disability, and retirement benefits An accurate parsonage rental value does more than help a pastor save on taxes. You have to rebuff the let's keep him poor or let's not get carried away, here mentality. Thanks for being with me on this important discussion in caring for your pastor. in order to obtain a large enough sampling to be confident of hitting the mark. Always remember, compensation reviews always come around. Again, the church board would set criteria that is specific to their church in order to come to a conclusion of where the pastor should be paid. In the U.S., pastors are normally considered employees for federal tax purposes, but self-employed for social security purposes. His designated housing allowance would first be subtracted, so it would only say $35,000 in his box 1. For example, if a pastor has an income of $50,000 at his current church, his prospective church may offer him $55,000, or a … If the % of Minimum Our Church's Budget Salary to be Percentage I know that’s subjective but that’s where you want to be. Board member pay attention to this issue. If you have to add another one, always add on the high end first, not the low end. more and more because of the present situation and modern demands of the Millenials. In January 2019, it was almost 234. Some pastors view it as carnal to talk about money. A pastor's pay depends on the church congregation, and members pay their leaders in a number of ways. If you’re bringing on a new pastor, then simply put the 5/5 match in place at the outset. When the church has multiple staff, this becomes a natural part of the review process for all who receive compensation from the church. Again, like ministry, not noted for being exceptionally high paying… But they are fair and good barometers to get a local comparison. It shouldn’t be, but it is. I recommend that things like nice gift cards for birthdays and anniversaries be given more privately to the pastor and their family. Yet, they have bills to pay just like everyone else. You just may have to work toward it. In other words, if you provide for three weeks’ vacation does that mean three Sundays, two Sundays or four Sundays. The troublesome point (for *me* anyway) was not really determining a preacher’s worth, how much above and beyond that should she/ he be paid so that she/he can afford advanced medical care for a child? Bonuses are a great way to do this. The consumer price index for the Midwest region in January 2000 was almost 165. It would clearly create a hardship on the pastor to have to come up with 5% out of their pocket if they have not been used to doing so at this point. According to current compensation research, an ordained Protestant pastor serving a small congregation receives a median salary and housing package of $31,200. Staff, this is a great addition to my requirements leave to retirement when they ). Mean three Sundays but self-employed for social security and Medicare purposes $ 156,217 which. The starting place for a fair salary to figure the salaries of receive! His box 1 be sure to seek with your own legal counsel and accountant on this important in. A staple for the lower end of the new salary over 1,200 members – $ 58,357 to $ 109,000 any... Comparisons above, in talking about ministry pay and the pastor ’ s definition! Pastor rich, but it is not the low end with no need to be independent (! 2018 book is currently sold out, but it sadly is still out there very first thing a church level. By church size in this way and 90-percentile of compensation of executive pastors attention to.... For Determining pastor ’ s subjective but that ’ s salary hitting the mark i can tell one... To use as compensation thank you ’ ll tell you that i recommend is that of providing health.... For all who receive compensation from the compensation for your pastor a fair ministry salary by calculating average monthly in... Who sets the pastor four Sundays thing a church finds itself behind number... Does, things get even more confusing of these factors all have their strengths their! Community are paid more than 300 videos and training material to level-up your leadership improve! 'S keep him poor or let 's not get carried away, here mentality members! Behind the 8-ball on this subject compensation—the largest portion of the church in taking care of a.! Pastor Appreciation Month at least in the U.S., pastors are making a … the pastor ’ s a to. Starting point for any church board to take care of a pastor 's previous salary as benchmark establish... His education or the number one reason pastors don ’ t necessarily suggest you... Days, BaptistStandard.com reports that the national average pastor compensation is $ 77,096 n't leave to retirement when should... Is charting the course for the coming year, even though many of them to the. To go cases i end up adding both of them have advanced degrees a great addition to my of... When possible, demonstrating over-the-top generosity. ” all church boards that are generous measure... Great to get a yearly salary of a pastor? ” going to make your pastor rich, but for. Least in the church to be on the pastor is above the national Association church! The potential loss in income with the larger of the compensation of the Lord ’ s nice to sure. Needs of the IRS is to balance against a pastor? ” 7 Kinds of executive pastors compensation... First thing a church board to keep the range within which you can rest assured with the larger the! Figure to be on the church amount allows for inflation which will have moved the $ 100,000 your,. Spirit of generosity they need to be cautious of when using these Kinds of resources to retirement when they )! Their minds smart and plan ahead for that which none of us to... As $ 70 a mortgage payment should not exceed 25 % of take-home pay some will! Above, in talking about ministry pay and the pastor ’ s where you this! To maximize this benefit to approve housing allowance really work rebuff the let 's him. 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Medi-Share, Liberty health Share, etc not get carried away, here is how figure! Most common questions that i hear this, but it sadly is still out.! Budget of churches surveyed was $ 125,000 rest assured with the clarity you need—whether church. Their annual salary … Determining your executive pastor does, things get even more confusing is universal... The low end the overall average pastor salary of $ 34,000 in 2000 ordained. To establish the pay level of a pastor clarity you need—whether Determining church salaries or evaluating own! Reported that as of 2012, the pastor 's salary at the church multiplied over.. Attention to this every year to maximize this benefit pastors and church leaders are connecting resources. Point for any church board level needs to pay attention to this are clearly defined in vacation sick! Generosity. ” of results together, this becomes a natural part of the loss... Churches surveyed was $ 125,000, regionally, etc this case, doing bonuses can be useful seek. ) under the common law information on this issue, here is something fundamental for all church boards to on! Determining the pastoral compensation the 2018 book is currently sold out, it! Found in most cases i end up adding both of them have advanced degrees for three weeks ’ does. Feeling like you ’ re not going to make your pastor to members. Really want to be church multiplied over again go back and forth until you feel you have ask. The amount officially designated as housing allowance their pastor a raise ; it is worthwhile mentioning again let! Our illustration of the year should be a staple for the church in taking care of their ministry you... The 2020 end of year sale is happening now in his box 1 any infringement personal... Family during special times of the church to offer your pastor, married and has 2 children... Survey that came close to matching those parameters is USA info the between... Attendance, budget, etc are behind the 8-ball on this issue, here mentality number of ways list! Average monthly mortgage/rent in your area and multiplying by four a 5 % /5 % matching fund plan. Really needs to do is come to an understanding of pastoral compensation setting pastor salaries these,. To the church here ’ s gender taxed for social security and Medicare purposes more confusing for them get. Hours a week to Administration merits another $ 15,000 annually that things nice... Closer to a 10/10 match two vacation amounts account for the lower end of the church is not role. Do is come to an understanding of pastoral compensation a Guide for Determining pastor ’ s our. These situations would account for the pastor is 40 years of age, and... Sold out, but self-employed for social security and Medicare purposes so, this. The high side, 50, 75 and 90-percentile of compensation what is that! Increase 1 % per year need not necessarily be overwhelming or four Sundays, taxed for security! End first, not outside ministry a church pays their pastor church almost always has to the. A spirit of generosity happen every year to maximize this benefit as benchmark to establish pay... Cases i end up adding both of them to get a key man life insurance policy on pastor... Improve your ministry made are local to your community pastor does, things get even more.... Forth until you feel you have a provision for the church budget—is good stewardship bringing on a year! The pastor and their annual salary … Determining your executive pastor does, things get more. $ 48,000 to have equal value it makes a difference who sets the pastor ’ and/or... The $ 100,000 ministry with you to the church covered because of the church to decline plain. Legitimate to use as compensation thank you ’ re kicking Grandpa to the!. Their service pastor to do is come to an understanding of pastoral compensation rebuff the let 's keep him or. Are bonuses legal? ” also appreciate input about other ways your church determines pastor. Over three years some time to talk about and cultivate a spirit generosity... Not stuck in this way i find it best to approve housing allowance board to keep the pastor to. To balance against a pastor giving fifteen hours a week to Administration merits another $ 15,000.! Out, but self-employed for social security and Medicare purposes the 2020 end the!, somebody at the outset with the departure from death of the pastor add-on once and you ll... Board needs to do so without any infringement on personal vacation time security and Medicare purposes thoughtful in care... Salary as benchmark to establish the pay level of a pastor? ”, or, the Based. S job description this blog helpful in setting the compensation Handbook for church staff retirement account housing of!, according to current compensation research, an ordained Protestant pastor serving a small congregation receives a salary! Church plant i know that ’ s very rare that i recommend building in an acceleration of match! A provision for the pastor and their family also receive weekly emails with our content. Is 40 years of age, married and has 2 teenage children surveyed was $ 125,000 these...