I am often asked the question, “What should pastors be paid? Isn’t it their obligation to forswear the material world and share the word of God?” Pastors do what they do because they love it. These servants of God are not in it for the money.
They share the word of God through preaching and teaching and “shepherding the congregation.” They pray for those who are sick, those in need and those who are less fortunate.
If you ask pastors about their calling, they will tell you that it is an honor — and, yes, a 24/7 job. And just like everyone else, pastors need to be able to support themselves and their families in both the here-and-now as well as the future.
As both a pastor, and a member of a congregation, I have had the rare opportunity to gain insight from standing on either side of the pulpit and am pleased to take this opportunity to share with you what I have learned.
Throughout history, there have been opposing opinions on whether or not pastors should receive fair compensation. Since its establishment, the Ministers and Missionaries Benefit Board has advocated to improve the compensation for ordained and lay church staff in order to improve the quality of life and long-term security of church workers and their families.
Those setting the salary structure often look at compensation as one lump sum. Compensation is actually comprised of two parts — salary and benefits. Salary includes cash, housing or parsonage allowance and Social Security/Medicare offset. Benefits include retirement, life and disability insurance and health insurance. Benefits contribute to an employee’s feeling of security and well being, making it possible for your pastor to do his or her best work.
Reimbursable expenses, job-related expenditures such as travel, automobile use, hospitality, conference attendance, continuing education, subscriptions to job-related books or periodicals, and so on, need to be established in the church budget, but they are not part of the compensation package.
When determining how much to pay a pastor a congregation needs to not only take the church’s financial re-sources into account, but consider the qualifications and accomplishments of the pastor. For instance, what education and experience level does the pastor have? What level of responsibilities will this individual be taking on in this role? Has the pastor achieved the ministry goals of the church? What are the salaries of other professionals in your community with similar experience and education?
To establish what constitutes fair compensation, you might consider the following: What is the cost of living in your area? What do churches of similar size pay their pastors? Is housing provided by the church? Will you offer your pastor benefits, or will he or she have to pay for their own? MMBB also suggests looking at the package provided to someone in the community with similar levels of education and experience — a local high school or middle school principal, for instance.
MMBB suggests that if your congregation does not have a pastoral relations committee or a church-staff relations committee, you should establish one. These committees take the initiative to talk with the pastor and represent the pastor’s needs. The committee can serve as a neutral intermediary to advocate for fair compensation with the church board and other decision makers.
Once compensation has been established, it is important to review the compensation package annually. At the minimum, staff salary should be increased each year to account for inflation. The Consumer Price Index (CPI) is often used to approximate the rate of inflation. Also take into account, merit increases — did the pastor meet their performance goals? And lastly, did the pastor accept the call initially at a compensation level below market rates? If so, it may be time for an increase.
In closing, a pastor’s salary is the responsibility and privilege of each congregation, just as it is the pastor’s responsibility and privilege to focus on church ministry and help the congregation. “Remain in the same house, eating and drinking whatever they provide, for the laborer deserves to be paid (Luke 10:7).
For more information about pastor compensation, consult MMBB’s publication, 2013 MMBB Guide for Church-Re-lated Employers, which makes recommendations on compensation, ministry-related ex-penses and benefits. An annual compensation planning checklist is included with the booklet. To obtain a copy of the publication, please visit www.mmbb.org, or call 1.800.986.6222.
Perry Hopper serves as the associate executive director and director of denominational relations of MMBB. Hopper also serves as an associate national secretary of the American Baptist Churches USA. His pastoral experience includes serving churches in Boston, New York City and Philadelphia. In 2002, he was inducted into the Martin Luther King Jr. International Board of Preachers at More-house College in Atlanta. His education includes a B.A. in political science (with a minor in business administration) from the University of Washington and an MBA from Penn State University. Perry also holds a master of divinity degree from the Harvard University Divinity School and a doctor of ministry degree as a Samuel DeWitt Proctor Fellow at the United Theological Seminary of Dayton, Ohio.