In many churches, the pastor’s salary is a quiet issue. There is a sense of discomfort from both the pastor and the members when the topic is broached. Such discomfort is unfortunate, however, because a number of churches will not seek every year to make certain the pastor is paid fairly.
A couple of prefatory comments are in order. First, we all know of the extreme examples of pastors living lavishly or mismanaging money. Those stories, though true, represent a small minority. Most pastors are not overpaid. And most pastors manage their limited finances well. Second, I am aware that many people are unemployed and that anyone who has a job should be grateful. That is still not a good reason to pay a pastor unfairly. As a final note, this brief article is relevant to all paid church staff, though my focus is here on the pastor.
In my 25 years of consulting and working with churches, I have discovered five common issues that are not always known by most church members. And lack of awareness of any one of these issues can have a detrimental impact on fair compensation for the pastor.
- A pay or compensation package is not the same as a salary. I cringe when I hear churches state a package to be the pay for the pastor. The package includes benefits such as health insurance and expense reimbursements such as business use of the automobile. No worker in a secular company adds their benefits and expenses and calls it their pay. Anything other than the cash payment (before taxes) the pastor receives should be reported in a totally separate category.
- There are many resources to find out what the fair compensation for a pastor should be. Many denominations provide their own compensation studies. But you can do an Internet search for “pastor pay” and see a plethora of resources that are available. And as a rule of thumb, you could seek to estimate what the mean income is for families in the church, and use that as a basis for compensation for the pastor. Churches that do not do their homework on pastoral compensation tend to underpay their pastors.
- Many pastors request no raises but would still appreciate one. Some pastors simply don’t want to deal with a critic who might question any raise given to a pastor. Others feel extremely uncomfortable talking about money in general, and use the “no raise” request to deflect further conversation. Some think it’s just the noble thing to do. But most pastors, in reality, would appreciate a fair raise to keep up with growing expenses. Don’t accept their requests as the last word.
- Many pastors are under extreme stress because they do not have adequate income to meet their financial obligations. Like anyone else who is under heavy financial burdens, a pastor can find his thoughts consumed with worry. Because he is so distracted, he naturally is less effective in his ministry. Both he and his family feel the pressure.
- Some pastors leave their churches because of pay issues. You will not likely hear a pastor announce in his resignation that he is leaving because of financial pressures. The reality is that, for a number of pastors, the issue of compensation is a major push from one church to another, or from the church to a secular vocation. It’s not that the pastor is in his job for the money; it’s that the compensation for his vocation is insufficient to meet his family’s needs.
Paul wrote these words to his young protégé, Timothy, in 1 Timothy 5:17-18: “The elders who are good leaders should be considered worthy of an ample honorarium, especially those who work hard at preaching and teaching. For the Scripture says, ‘Do not muzzle an ox while it is treading out the grain and, the worker is worthy of his wages’” (HCSB).
It is unfortunate that the few indulgent pastors who live lavish lifestyles get most of the attention. The reality is that most of the some 400,000 pastors in America are not overpaid; indeed many are underpaid. Those are the pastors who need our attention.
Posted on December 17, 2012
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.
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522 Comments
Dr. Rainer,
My church in particular did much study on local salaries, and we decided on a generous amount for our pastor. After the decision was made, he was in the top 5 paid in our state and we were glad to be able to do that. But, my concern is, for a few years now our church has had some very difficult financial stress. He has gracefully taken two pay cuts over the years, and is trusting The Lord and the congregation to care for him. We pay all other expenses as well, insurance, cell phone, mortgage compensation etc. Even now, his salary is burdensome yet again and there is obviously no desire to cut pay again. We love and care deeply for our pastor, but we feel stuck. Do you have any advice? On top of all this, we are an elder lead church down to one elder, which we do not believe is biblical, but we cannot afford to compensate another, and no lay pastor has stepped forward. I trust our Sovereign Lord, but please pray.
I will pray Jared. Sometimes, from a human perspective, there are no easy answers.
Well written; I’ve been on both sides of the scenario over the years as a pastor. Something tells me a lot of Pastors might not “share” but will “like,” “favorite,” “retweet,” and whatever else they can do to non-nonchalantly expose people to what you said!
hahaha
Dr. Rainer – I graduated from the Billy Graham School in Louisville in 2002. I would like to request a speaking engagement from you. How do I contact you? Email me please or pm through FB. Thanks. Michael Mason
Good thoughts Tom. I think that is the hardest part about applying for ministry positions is feeling you will be judged as more interested in money than ministry if we ask about salary or even cost of living raises in current positions. Many of us have to ask that question though because many of us have families to care for and support.
I definitely relate with number one. It is almost deceptive to present a compensation package as a salary package when much of it is going to insurance, retirement etc. All good things, but not an accurate predictor of what the pastor is actually bring home to pay for bills, housing and food.
I’m “retired” from the pastorate now, but was there or 30 years. I was, indeed, always underpaid. I never had benefits such as health insurance and retirement plans. At my last church, my “outrageous” (in fact underwhelming) pay caused numerous, anonymous, internet comments about my lavish lifestyle and my bankrupting of the church. It’s a reality, yet most pastors prefer not to speak up about it. Thanks for speaking for them.
Curt –
Thanks for your words. You are not alone in your sentiments.
How would these points line up with SBC employees? Point 2 especially comes to mind. The SBC exists because of and in support of local churches. SBC entities work from the same Bible and statement of faith as her local churches and hold her staff up to biblical standards. Paid SBC employees work in vocational ministry. Therefore, why shouldn’t SBC entities base salaries on estimates of what the mean income is from all SBC churches?
Or something like that….
The SBC is a Non-Biblical Machine. It has no, none, nada, zilch basis in the biblical principle of church life or organization. It is a business that should be guided by secular business principles. There is NO comparison between the employee of the SBC and that of a church pastor.
I am very proud of our church and the way the finance committee handles this issue. The church is not large enough to support a full-time pastor, particularly with benefits. Yet they have offered our family a salary increase every year we have been with them serving bi-vocationally. They recognize our sacrifice as well as the joy with which we serve and the small salary increase just shows us that they appreciate our ministry. I’m sure they could show appreciation in other ways as well but this sure means a lot, especially for our kids. Of course, being bi-vocational it is not as much of a “need” as it was when I was serving full-time. Those guys really need to be shown the love, especially in small churches. They sacrifice much for the kingdom but most don’t even see it as a sacrifice but a joyful service.
You are so right…..package is the “killer”word. This is something close to my heart and I speak to it every opportunity the Lord gives.As director of missions I believe it is my responsibility to inform the church leadership of their responsibility to provide for their pastor and staff in a generous way and that the Lord will bless any church that demonstrates their love in a tangible way. The other side of the coin is we who are called should work hard and demonstrate good stewardship……………all for HIS glory.
I don’t see the though process behind the statement that pastors should work (or even be willing to work) for free. These are men with families that they have to provide for just like anyone else. They should be paid a fair compensation. Most people who are not pastors have no idea what pastors really have to deal with on a daily basis. There is so much more than just preaching on Sundays and teaching on Wednesday nights. And, a spouses salary should not have anything to do with what he gets paid. My husband is a pastor and I work outside the home also. Not completely by choice – I mostly work to supply benefits that my husband is not offered. Without my job, we would have no health, dental or vision insurance. I am not complaining, for we have been very blessed and are very grateful to God for providing for us daily. I just think that most people don’t understand the life of a pastor and his family and how difficult it can be sometimes. If they did, I feel confident that no one would question a pastor’s pay again.
*thought
AMEN
I,was working two jobs when the economy tanked. Teaching at a Community college and chaplaincy at a jail.
60 hrs a week. Lost both jobs in two months .
God freed me to minister in Ethiopia, twice, then called me to.pastor a church in a rural town in a very poor,part of the state. A city church supported me briefly while we planted the church and then they had a financial crunch of their own. We get nothing from our tiny church. God really does supply all our needs.
Thank you for your post. “Supplies all our needs” how refreshing to read this from a pastor. Serving in Ethiopia I am sure had something to do your attitude. It is hard to complain when you see how absolutely we are blessed in the USA pastor or not. The whole salary of the pastor vs the average income is “covetousness” pure and simple.
We have created a “church system” that requires trained, even professional, management to oversee and maintain. The sad result of that system is that we expect pastors to serve as CEO’s and we operate church like a business. This responsibility of oversight includes buildings and property, personnel, vendors, accounts payable, and overhead. And we haven’t even started with what the church is really all about: making disciples. For most churches 80-90% of their income through member contributions goes toward maintaining the system (salaries, insurance, utilities, building/property maintenance, etc.). That leaves 10-20% to support actual ministry. We justify that by saying the other 80-90% is ministry support. Whether a church has 50 or 5,000 members, the basic system works exactly the same. Pastors could earn their living doing something else, but if you’re “in the system,” you pretty much have to operate in the above described scenario. It doesn’t have to be that way, though. Jesus did not institute an organization that must be managed, but an organism that must multiply.
If Jesus thought like you He would have never put together a flow chart (the 3, the 12, the 72) and Paul wouldn’t have taught organizational structure to Timothy (Paul, Timothy, reliable men, others also) Any leader knows that anything that is going to continue to multiply must me managed well. Jesus and Paul both lead and managed well. (Jesus even had a treasurer)
I agree with you we serve a God of order, planning and structure. Our God is into extremely detail. I agree that the organism must multiply but that happens through the regimented structure he put in place. Form the tabernacle other 3 groups with in the levites who had specific duties and task when they tried to get out of order they got swallowed by the earth. Number 16:1. Proverb 16:1 amplified says planning an organization is man job!