Podcast Episode #116
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Salary is always a hot topic here on the blog and the podcast. And today we tackle a question we often receive: how to set a fair pastoral salary. Most churches handle this well, but many often struggle when deciding on what to pay new staff or even how much more existing staff should make. Most importantly, minister salaries should be handled with grace and fairness.
Some highlights from today’s episode include:
- Demographics of the church and the surrounding community play important roles in setting a pastor’s salary.
- Education has come down slightly as a driving factor for setting a pastoral salary.
- A spouse’s compensation should never be taken into consideration when setting a minister’s salary.
- Men and women in similar ministerial roles with equal education and experience should be paid comparably.
- Most pastors struggle financially. The extravagant pastor is the exception, not the norm.
- Churches should use compensation studies and other tools to help determine the range of pay for ministers.
Here are six simple guidelines for setting a fair pastoral salary which we discussed on the podcast:
- Usually starts with previous salaries: former pastor and incoming pastor.
- Demographics of church and community.
- The education factor
- The problem with “packages”
- The problem with counting spouse’s pay
- Overriding principle: Be gracious
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Another possible part of the salary review is to look at the salary and benefits of the local elementary school principal because responsibility, hours, education, and job intensity are similar. Then factor in housing if the pastor is on a housing allowance.
That’s helpful. Thanks, Dave.
Thom,
I could not agree more. Salary is such a “hot topic” yet so many churches seem to struggle with it. We recently addressed this issue as well: http://goo.gl/NfywSx.
Talking about staff compensation should not be a taboo subject in the church. Compensation is very important to the long-term success of any staff member.
Well said. Thank you, David.
I would not say that a spouses salary should never be taken into consideration. It should be considered when a pastor’s family is dependent on two salaries and the proposed move would mean that the spouse would be giving up that second salary. At that time it should be considered as to whether the church can afford to compensate for the loss of salary and to what degree they can compensate. They may not be able to make up for all the loss, but for some of the loss. This is vital because the spouse may not find another job in the new location or may not be able to match the previous salary and be forced to take less, sometime a considerable bit less.
Thanks, David. I was referring to churches that use the spouse’s income as an excuse to pay the pastor less.
I understood the point you were making, and I am in total agreement with you on that point.. I was just throwing out another thought into the discussion. I ran into this situation myself with a church that would have required a move across state. My wife who makes more than me even now would have had to give up her salary and the other church could not compensate; actually pay anymore than I was being paid.
Got it.
Thank you, Dr. Rainer, for addressing some of the more unpleasant things that churches do with respect to ministerial salaries—particularly the practice of paying female ministers less than male ministers and the practice of paying ministers less who have working spouses. Without doubt, you love churches and have a heart for church people, and part of that love is telling us when we are doing things that aren’t right. I confess that, as a lay leader, I did one of these things. My excuse was that the budget was a little tight, but I allowed my own fear about the future to overwhelm my sense of fairness. I share this in the hope that others will learn from my experience. I hope that all of us will be honest with ourselves about our own compensation practices and will make changes that benefit those who serve our Lord Jesus Christ.
Is there any research or thought as to why education is now less important?
Tim:
I have two thoughts. First, more churches are hiring people within their own congregations. They are thus hired more for their known competencies and character rather than their education. Second, some churches are not convinced that traditional theological education prepares minister for real world ministry.
Those are great thoughts concerning the new role of theological education for the pastor. I agree there are some great leaders without traditional theological education, however it is my prayer that our leaders are prepared to lead. Thank you for the thoughts.
It’s having to pay all of my Social Security and Medicare that’s killing me as a pastor. I am paying almost $11,500 a year on FICA.
When a pastor moves to a new church, some type of temporary assistance should be considered to help the pastor dispose of his home in his former place of residence if he owns that home. The cost of paying for two homes can destroy an otherwise reasonable compensation.
Dr Rainer thanks, this is so insightful. Reading through all the comments even make better preparations for upcoming pastors like me. God bless this gud work.
How do set up a salary with barely any money in the church? a few members
I don’t understand why a wife would be getting a salary. My best friend is a pastor’s wife so I’m not trying to suggest that the support of a good wife isn’t crucial; but what kind of role is she being hired for with this salary?
Another factor which often impacts staff salary amounts is church debt. Churches often borrow large sums of money to build buildings, anticipating that the buildings will generate growth sufficient to cover the debt. When that doesn’t happen the debt is sometimes paid for by depleting staff salary line items. A good article might be produced on the impact of church debt on staff salaries and missions giving!
Dear Sir/Madam,
We would like to take this opportunity to introduce our church. We are The Risen Power Baptist Church of Ethiopia. We serve rural areas of Ethiopia specially, very poor Muslim Communities.
No one person fulfill the great commission of Jesus Christ, it need the entire body of Christ Working together. In this respect that we would like to partnership with your organization, your support in this area would be very helpful. I hope you will consider being part of our Evangelism ministries.
We would appreciate a chance to discuss this program further with you.
Hoping for your positive response
Together in Christ service,
Kefelegn Sahle
Mailing Address
P.O BOX 260
Zeway
Ethiopia
Email: et0705icp@gmail.com
Mobile phone: 0912189048