How to Figure the Salaries of Pastors Based on the Sizes of the Churches Paying the Pastor. All rights reserved. The average Associate Pastor salary in the United States is $71,887 as of November 25, 2020, but the range typically falls between $60,265 and $83,518.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. This is an area where the thought is truly what counts. But I’ll tell you that I pray you find all the money you need to help your pastor live better than most. Let me describe how this works. Average Salary 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. 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. Whenever possible put the money in an after-tax retirement account. With both of these resources, the church is able to determine the 25, 50, 75 and 90-percentile of compensation. You just may have to work toward it. 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. You will be unbelievable glad you did! 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. Copyright © 2020 Leaders.Church. 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. And those in ministry aren't always sure how their pay compares. Always remember, compensation reviews always come around. Many congregations calculate a base salary for the pastor based on his education or the number of members in the church. His designated housing allowance would first be subtracted, so it would only say $35,000 in his box 1. Your church reports this value, along with cash salary and utilities, to MMBB for … This is a great addition to my post of Feb 2017. Housing Allowance Determine the starting place for a fair ministry salary by calculating average monthly mortgage/rent in your area and multiplying by four. In that case, go with the larger of the two vacation amounts. Generosity needs to manifest itself in three areas: missions, benevolence and staff compensation. I would love to hear from you about these five most common approaches. Example – #1 – this pastor receives a cash salary of $45,000 per year and lives in a church owned parsonage with a monthly Fair Market Rental Value (FMRV) of $1600; the annual FMRV is $19,200. 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. Privacy Policy Terms and Conditions. Church Board Members: Disagreeing without Drawing Blood? In January 2019, it was almost 234. Certainly, the traditional group health insurance options are out there. You want the church covered because of the potential loss in income with the departure from death of the senior leader of the church. At that point, I ask why the church board would want to pay their pastor average if the pastor is above average. 300 to 500 members – $68,591 to $156,217. Now, here is something fundamental for all church boards to remember when fulfilling the task of determining the pastoral compensation. More than 25,000 pastors and church leaders are connecting with resources just like this. A pastor's pay depends on the church congregation, and members pay their leaders in a number of ways. 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. This comes naturally for some boards. However, there are some exceptions, such as traveling evangelists who are independent contractors (self-employed) under the common law. Yes, you can do that. I was glad to be off that committee. 5/5 in year one, 6/6 in year two, 7/7 in year three, etc. These are public employees. These were the results of the participants in this survey that came close to matching those parameters. 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. This … 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. When a church goes above-and-beyond in these three areas, they see the Lord’s blessing returned to the church multiplied over again. That means in 2019, the pastor’s salary should be just over $48,000 to have equal value. 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? So, do this add-on once and you’ll be good to go. Over 1,200 members – $92,255 to $189,053. So you can rest assured with the clarity you need—whether determining church salaries or evaluating your own. This is a great addition to my post of Feb 2017. His designated housing allowance would first be subtracted, so it would only say $35,000 in his box 1. 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. The number one reason pastors don't leave to retirement when they should, is they can't afford to. I look forward to hearing from you. For lots of churches this would be in November, prior to the start of the new calendar year. Also, be sure it is clear that vacation is vacation, not outside ministry. If you find yourself at $60,000, then I recommend taking the next three years to literally set the pastors compensation for each of those years in advance of when they happen. Salary Calculation by: GB This is the only way that I know of to calculate the salary. Board member pay attention to this issue. The pastor's salary at the previous church. The church pays the utilities (which they should) that amount to $2,800 per year. The amount actually used to provide a home, or, The amount officially designated as housing allowance, or. 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. 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. Of course a few high visibility megachurch pastors are making a … 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. The salaries of pastors in … To eliminate stress as you begin to write sermons. Therefore, just be smart and plan ahead for that which none of us want to have happen. Whatever you do, don’t start into some commitment of regularity if you don’t have a way to follow through with that regularity. Discover the 5 things that will propel you to the next level as you sit down to write your sermons. Operate with a mentality of “how can we pay our pastor as high as possible, demonstrating over-the-top generosity.”. How can a fair, equitable salary for pastors be determined? (Note, I am not a financial advisor so seek financial and legal counsel on this issue.). You want this to happen every year to maximize this benefit. A church pays their pastor a salary of $34,000 in 2000. Lots of times a church finds itself behind that number. The National Association of Church Business Administration reported that as of 2012, the average U.S. pastor makes about $28,000 per year. 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. 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. One of the most common questions that I am asked is: “How do churches determine the salary of a pastor?”. Cancel anytime. By far, more churches use the pastor's previous salary as … 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. Even if it is USA info the separation of income is telling. 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. 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. 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. By far, more churches use the pastor’s previous salary as … When putting both sets of results together, this is the compilation which gives you the range from 50 percentile to 75 percentile. The 2018 book is currently sold out, but 2019 and 2020 research should be available soon. In this article, I offer the five most common ways churches establish the pay level of a pastor. I normally recommend churches do their research with two primary staff compensation resources. When comparing your pastor’s compensation to your community, I like to make comparison to public employees like the public school superintendent, Police Chief or Fire Chief. I read them to get some fresh information that will correspond to my If a pastor makes 24,000 a year divided by 12 equal $2,000.00 a month minus his housing allowance $1,500.00 equal $500x12=$6,000.00 as his salary for that year and he needs to file the taxes on that $6,000.00 or does he have to pay the taxes on the housing as well. Honestly, I guess such posts should be printed I recommend three weeks of vacation includes three Sundays. Benefits. For example, you might offer a higher base salary if the pastor has earned his Master of Divinity versus only a bachelor's degree. As such, pastors of churches with congregations of 300 people earn less than $28,000 annually as of publication according to a Crown Financia… I agree with your numbers. October is normally considered Pastor Appreciation Month at least in the U.S., so someone really needs to pay attention to this. I recommend that things like nice gift cards for birthdays and anniversaries be given more privately to the pastor and their family. That means in 2019, the pastor’s salary should be just over $48,000 to have equal value. 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. Believe me, you’re going to thank me over and over for this recommendation when your pastor starts to near 60 in age. These situations would account for the lower end of the national average (creating the overall average pastor salary of $49,837). This policy would pay out in event of the death of the pastor to the church and the pastor’s spouse in some proportion. It shouldn’t be, but it is. When it comes to setting pastor salaries these days, BaptistStandard.com reports that the national average pastor compensation is $77,096. A pastor is called of the Lord to ministry, certainly not a high-paying profession. A Guide for Determining Pastor’s Salary. You’ll also receive weekly emails with our best content to invest in your ministry. The answer is that bonuses for pastors are perfectly legal and legitimate to use as compensation thank you’s and/or motivators. We’ve identified seven states where the typical salary for a Pastor job is above the national average. And you put it in place in the current year with no need to revisit it in the next three years. And what is it that professionals in similar work in your community are paid? But when you ask people what an executive pastor does, things get even more confusing. This is where you have to rebuff the “let’s keep him poor” or “let’s not get carried away, here” mentality. The best church boards do this with diligence and a great sense of generosity. Church polity also impacts the size of pastors’ salaries. You’re not going to make your pastor rich, but you want to be on the high side of being fair. It’s the definition of awkward if your pastor has to remind you to give them a raise. Then go to work to create the range within which you can pay your pastor. The number one reason pastors don’t leave to retirement when they should, is they can’t afford to do so. As a church plant I know it’s incredibly important to invest in leadership development.”. 0 to 150 members – $4,800 to $109,000. I have noted in previous posts some resources that could help your church to offer your pastor a fair salary. I find it best to approve housing allowance in November for the coming year, if you are operating on a calendar year. 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). The median annual budget of churches surveyed was $125,000. Pastoral Compensation 50 percent of pastors receive compensation under $50,000 per year, even though many of them have advanced degrees. How taxes and housing allowance church goes above-and-beyond in these three areas: missions, benevolence and staff amounts! Of providing health insurance exceptions, such as traveling evangelists who are contractors! Is above average to 75 percentile to 1,200 members – $ 92,255 to $.... T be, but it sadly is still out there of “ do. And housing package of $ 31,200 also options to do so normally considered pastor Appreciation Month least! Attendance, budget, etc, not noted for being exceptionally high paying… but are! 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