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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**To clarify, since my sentence order above may cause confusion, the Roman Catholic error that I am referring to is the following: We draw an unbiblical distinction between “church work” or so-called “full time Christian ministry” and the work everyone else does and therefore we want to treat these kinds of work differently in various ways.
The following is NOT the Roman Catholic error, but is a sound, biblical idea about work: God is just as pleased in Christ with one Christian’s dedicated work for him as another’s, whether he is preaching a sermon or she is nursing a baby.
Hope that clears things up.
If you think the situation is bad with pastors, I’d hate to hear the stats on Christian school teachers. Against the conventional wisdom at least in some circles, there are a good number of men in teaching positions at these schools, particularly in middle and high school, and of course some are coaches as well. At the Christian school where I previously taught, there were many male employes and most of those had families, and just about to a man, we had summer jobs as well. Believe me, if the attitude is that pastors should get by on a side dish of peanuts and a main course of faith, then the attitude toward Christian school teachers is that they should lick the peanut shells off the pastors’ floor and scrape by on so-so faith (usually not credited with a lot faith; otherwise we’d have obviously chosen to be pastors!) To add insult to injury, I was at the time attending a church where the pastor was overpaid–not disgustingly TBN style overpaid–but definitely overpaid, and this stood out in sharp relief when the economy tanked. And all of the local pastors got a huge tuition discount for their kids and in fact I think tuition may have been free. The counter to this may be that I am comparing apples to oranges, and in one sense this is true, but in another sense, it stands as a valid comparison because if the argument is that pastors should be paid equivalent to other professionals with the same kind of education and credentials and experience, then shouldn’t Christian teachers as well? I mean, shouldn’t we at least try to pay them, say, 60 to 70, hey maybe strive for even 80 percent of the salary of other teachers in the area with similar education, degree, experience, etc. And benefits, ha! I won’t even go there at this point. I’ll shut up with what may well be the very faulty underlying assumption behind the lack of compensation: We draw an unbiblical distinction between “church work” or so-called “full time Christian ministry” and the work everyone else does and therefore we want to treat these kinds of work differently in various ways. Every Christian is called to a vocation by God and glorifies God in that vocation; God is just as pleased in Christ with one Christian’s dedicated work for him as another’s, whether he is preaching a sermon or she is nursing a baby. That is a Roman Catholic error, but it is happening here as well, with what I think are only surface differences. In Rome, if you are called to so called spiritual work, then you are supposedly elevated spiritually and morally above the common parishoner and therefore treated and thought of very differently; here it seems that the same thinking is afoot–what the pastor is called to is so different and special and spiritual that we can and even should treat him differently in compensation, in the hours demanded of him even if he has a family, etc. That is not Protestant, not wise, and most of all, not Biblical.
Absolutely, My years ago wife graduated from a christian college with a teaching degree and applied for a job at a christian school that was run by a church. My wife asked about pay and it was minimum wage and no Social Security contribution. My wife said, “I can’t live on that”. The pastor replied consider it ministry. Needless to say she didn’t take the job. Years ago, my cousin was on a board of deacons at a church that had a fairly large christian school at the time. The pastor and deacons were not afraid to go before the church to ask members to give “more” by faith for this project or that missionary etc. My cousin asked the board if they would be willing to give the teachers a one time bonus in the following year. Most objected and said the church couldn’t afford it. He countered and said why don’t you appropriated it by faith like you ask the church members to do whenever you present them with a “project” need. Well, they teachers got their bonus that one time the next year.
Amen Ash.
Dr. Rainer,
As to your second point, I would not put too much stock in denominational guides on how to compensate pastors. The problem is that they generally end up averaging what is rather than what ought to be.
Instead, it would be wise for churches to consider what other people make both in the church and in the community. In particular, it is wise to look at non-profit jobs that require similar education and experience. What does an Assistant Principle in the local school make? Do you think your pastor should be paid the same as a 28 year old Captain in the Army or a 35 year old Major? The military publishes salaries, Basic Allowance for Subsistence figures, and housing allowances – and you can find the housing allowance for the zip code your church is in. Such studies won’t provide a church with a point but they will provide a church with a range. I doubt anyone wants to serve on the search committee that tells candidates that we pay pastors less than 60% of what the Assistant Principle at our elementary school makes.
It is also important to refer back to your first point. Comparing the total compensation package of a pastor to the salary of people in other fields grossly distorts the results yet it happens all of the time.
Best wishes,
David
Excellent points David.
Epescially considering pastoring was considered the most stressful job in America by many life insurance companies second only to surgeons.
When a pastor lives in a parsonage and pays nothing to live there, everything he makes is spending money! No household bills is not a realistic way to live and still relate to your parishioners. Pastors should not be paid according to the salaries of their parishioners, after all, those people all have differing educations, licenses, and careers, not to mention, rates of pay!
When we decide pastoral salaries we should pay them according to their education, responsibilities and experience – the very same way everyone else in the USA is paid! Not according to emotion, pity or esteem!
Jeanine,
Ok, let’s take my husband’s salary. He has a 4 year degree from an accredited University in music. Then he went to a Seminary, also accredited, for an additional 3-4 years for a Master’s Degree also in music and worship. He makes roughly $19.200 a year in gross salary. You are right that he doesn’t pay rent or utilities. We do pay our own health insurance at this time. So that is a household bill we do pay, add to the fact that we are never enough people to qualify for any kind of group rate. If we were to take out our denominational health insurance offering through Guidestone, which is amazing and we would love to do, it would be $700 per month for our family of 5. That would be 2 of his paychecks. So now we’re trying to operate on $700 a month “spending money” to pay gas, car insurance, car loans (possibly), children’s educational expenses, clothing and groceries.
I just wanted you to see some real numbers on that spending money.
I try to follow the letter of the law as it relates to paying taxes, and, from that perspective, would like to offer some clarification.
While it is true that pastors live in parsonages “rent free,” pastors must, according to tax law, pay state income tax and the full Social Security tax on the Fair Rental Value of the parsonage, fully furnished.
Pastors are also supposed to pay state income tax and the full Social Security tax on any utilities paid by the church on the pastor’s behalf.
So, even though it’s “rent free,” it’s really not, because pastors must pay these taxes… out of their salaries, which are also taxed (tax on “salary” = federal income tax + state income tax + the full Social Security tax).
Good responses to Jeannie by S and Drew. It’s unfortunate that many church members have the same misperceptions articulated by Jeannie.
Those were very good responses, however, I was a youth pastor of a very large youth ministry and was paid $1 per year so I am well aware of the inside of church ministry. Since all of you are highly educated I am sure you went into this with your eyes wide open! There is little money in music and ministry unless The Lord gives it. EVERYTHING you have come from Father. Ask him for more. Be bold enough to tell the board of your church what you need and stop whining. Has The Lord failed to meet your every need? Perhaps we are underpaid in ministry because money complicates and sidetracks many lives. We have just enough; not too much so we forget God and not too little so we have to steal! Praise Jesus for all you have – you are blessed!
I’m truly sorry if you took my comments as condescending in any way. They were not meant to belittle or condescend but to edify. We haven’t whined or complained to our congregation. We are grateful for the roof over our heads and the heat in the winter. The suggestion that I am ungrateful hurts me, and I believe that it hurts the kingdom of God as well. We’re all here trying to better ourselves and our ministries, or in my case, support my husband and God’s ministry through him. We need to find ways to be uplifting to one another or no one is going to see the Light through us. I will be, as I have been, praying about my attitude. Thank you for allowing me to see that my comments here could be hurtful to someone reading them. I will strive to do better from this moment forward.
I have to speak on this topic about pastors and ministers being paid. Some are saying Jesus did not get paid.
Others say getting paid takes before minds off the service.
Most say the church is becoming a business model and it shouldn’t.
I experience all those views . But I want to add , man or woman who accepts the calling is taking on a lot , and today business model must be considered because we are in today times. Tax papers and disagreeable people chased them then , and will chase us now when get money to care for our family while accepting our calling.
I say find those who are like minded about your calling and have them determine your pay . This will allow you to care for your family and give most of your time to your calling.
I am looking for people who believe in and will become good stewardship counsel by setting reasonable pay for me in my ministry. Please contact me. Thank you for your help.
Along with S Files, I, apologize if my comments sounded condescending. My comment regarding taxation was meant strictly for clarification. I am truly grateful for the opportunity to serve the Lord, and, yes, He does supply our every need. Ministerial taxes are complicated, and my desire is simply that more people understand ministerial taxes.
Neither comment sounded condescending to me. I serve a great church and am well-compensated, though I haven’t had a raise in several years. My problem is the constant tension between trusting God to meet the needs of my family and the equally Biblical mandate to provide for my family. When you figure out how to resolve that tension, please let me know.
Jeanine,
You sound offended and upset. You should consult your Bible for how pastor should be paid while your reading stop by matt18 and read it …repeatedly.
Dr. Rainer-
An inscription somewhere reads, “The hope of democracy depends on the diffusion of knowledge.” Given that Baptist churches operate according to democratic processes and that pastors really aren’t in a good position to “diffuse knowledge” when it comes to ministerial compensation (because it always seems self-serving, even when it’s not), do you have any suggestions, recommendations, or wild ideas about how our denominational entities (local associations, state & national conventions) can help churches better understand the issues? I realize the resources are available, but many churches never reach out for help because they either don’t want it or don’t know it’s available.
Drew –
There is no quick-fix solution, but more and more voices are addressing this issue. I will continue to be one of them.
A long time ago, in a galaxy far, far away…
One December business meeting, the newly formed finance committee (unwittingly) stated something to this effect: “When you total everything up, it comes out to $_______.” They had lumped salary, housing allowance, retirement, health insurance, utilities on the parsonage, the fair rental value of the parsonage, and the mileage reimbursement into one figure. The congregation walked away thinking, “Our pastor makes $_______ a year.”
For a couple of years after that, the vast majority of the people who were present in that business meeting still thought, “Our pastor makes $______,” and they operated accordingly. In reality, the pastor made about 60% of the figure that had been stated… before taxes.
Let’s just say the figure thrown out in that business meeting was $35,000. It wasn’t quite that high, but the math’s easier this way. Let’s also say his actual gross income was 60% of that, which sounds about right. The pastor was actually “making” $21,000 a year. Subtract from that health insurance, retirement, and, of course, taxes. What’s left? Not much.
But everybody in the church thought he was making $35,000 a year.
Does anyone else see a problem?
Thank you for this. So true. I was forced out of my church recently because other churches helped us out financially over some major bills in our life because our church couldn’t pay us more. They took this as financial mismanagment on our part, yet we couldn’t afford to live on what they paid us.
good word, Dr. Rainer. Thank you! Now how do I get this into the hands of my elders without it looking self-serving. This has always been my struggle.
The self-employment tax issue is another one that will eat up what appears to be a generous salary. How does one address that?
Steve-
That is a great issue for discussion. I may do so in a future blog. Thanks.
Look into 4361 exemption
I think it is truly sad to hear Christians who feel the need to burden those who give more of their heart and dedication to their churches than any ceo ever would for their company. Jesus’ ministry was supported by rich women who followed him around and paid for everything. How’s that for a Biblical model for compensation. Luke 8.
As a bi-vocational (Southern Baptist) pastor for over 6 years now, I can tell a new pastor many lessons learned. I work full time, take care of a sick wife (getting better), tend to our kids and help out around the house as much as possible. Struggle everyday with stress related to financial difficulty. One, there is no such thing as a “part-time” pastor. There will be members who will understand that you also have to feed your family. There will be those who think you should be at their beckon call. Two, your members will have to know every faucet of your daily business and life. However, they will never devulge anything to you. I actually had a member interogate my 10 year old to get information about where I had been that week. No where bad, I simply chose not to say to see what the reaction would be. Three, you will never, and I mean never, make everyone happy. Four, you will be questioned about your work for the church. Keep a visitation log always noting date, who, and what was discussed. When you do Bible Studies, provide the congregation with notes. Ensure you know what Sundays and Wednesdays are scheduled to be “no service.” If they do not have a church calendar, make it a point to get one. Understand the number of sick and vacation days the church provides. Remember, pastors get sick also. Five, you will always be reproofed by your members. They will have no problem pointing our your faults. Be prepared to have some difficulty. Many believe that pastors should be super human and never sin. It hurts to say that the church today does not represent that which, I believe, Christ wanted. Always remeber this, When a church begins to only see you as an employee and not their pastor and spiritual leader, it is time to ask God where to go next.
Thanks for the education, DeWayne. I am currently a freshman seeking a bachelors degree in ministry and regularly worry about my projected ability to support my family as a pastor, and repay my student loans. I am more than willing to maintain secular employment if it is necessary, but it is certainly not my goal to require said employment forever. I do not expect to be rich by any means, but I would expect to be compensated fairly for my level of education in the field. There are only so many hours in a day, so it is only common sense that a pastor who is required to maintain secular employment just to survive cannot be fully commited to God and His ministry.
With that being said, some of the comments here are absolutely disgusting and border upon insanity. Most pastors today, even if they delegate well, bear far more responsibility than the disciples of Jesus’ time. The disciples did not have homes, electric bills or other living expenses. The early congregations did not have buildings with bills, equipment, and other responsibilities, yet those congregations supplied the disciples with housing and food at the very least. This is not the society that we live in today, and the calling of ministry has been fundamentally transformed into a real, definable full-time (and then some) career since the time of Jesus.
I write this with love in my heart, but I am compelled to rebuke those here who believe that a pastor (or anyone else who serves a congregation in a near full time capacity) in today’s society should not be compensated fairly for his time. If you believe that, you are wrong.
I feel for you. It is too bad people are people. I would guess only a small percentage of the people cause 99% of the grief. It is that way in business. I always got rid of the customers that cause 99% of the grief.
Unfortunately you cant do that as a Pastor.
“My brethren, let not many of you become teachers, knowing that we shall receive a stricter judgment.”
James 3:1 NKJV
Wow
Scott, do you realize that most ministers outside of developed countries tend to not be paid well, by their standards, if at all? What makes the call to the ministry in the US so much more demanding and expensive?
Also, every christian is called to a ministry in some form or another but most work regular schedules. Maybe if the church members took on more responsibility they could help alleviate some of the burden of the pastor.
I am not saying that pastors should not get compensated fairly for their time and effort. I am simply stating that the entitlement that so many feel is not supported by The Bible.
My husband is a pastor. I work outside of the home and am the primary breadwinner because he makes so little. We tithe 10% to the church and above that for other ministries within and outside of the church, because the NT commands to give all we have. We live in a very small house by US standards. We have one child and it is hard to find room for my medical equipment and the few developmental toys we have for our daughter. We don’t have the toys that most congregation members have, like blue ray, new cars, expensive smart phones, ipads, stereo systems, ipods, cable, internet, etc. We can’t afford them. My husband’s car is on it’s last legs and we can’t afford a decent used car. Mine is nine years old but thankfully paid off and still runs well. The church is in the process of making my husband full-time, but with the cost of insurance, I’ll still have to work unless he can manage the hours of a secular job, as well. He already works far more hours than is expected for a part-time minister. Why? Because, unlike all of these posts that talk about how the body of Christ is supposed to do the work and the minister is taking on too much and not delegating (and blaming him or her for it!), the body of Christ is not doing the work, and no matter how many times our pastors try to delegate, most people are too busy. I have a very painful disease and we can’t afford for me to quit my job to seek disability.
You want pastors to live in the church building? Are you going to pay for them (lead and associate) to fix it up so that it is livable? Or maybe you’d like to do what the biblical Christians did and give up everything you have and donate all of it to the church so that everybody can share? Oh wait. Pastors should do that, but not you? When Jesus went from town to town, did he stop and construct something and sell it so he had money to stay at the inns along the way? Or did Christians take him in and house him and the apostles? So are you willing to take in your pastor, feed and clothe him?
A pastor should pay for a car with his own money from a secular job, you say? And buy a house (such a luxury item) with his own money from a secular job? How do you expect him to drive to visit people? Should they all just come to him? And how should those shut-ins get to him? Are you going to volunteer to bring them or to pick him up and drive him to his visitations? To the hospitals and nursing homes? How about at 3 a.m. when he gets that call? Or at 10 a.m. when you are sick at home with a cold and the pastor gets a call that a church member has passed? Are you going to leave your job to take him to see the grieving family? Or if he has a secular job, is it acceptable for him to up and leave? It’s nice to say that all members of the Christian body should pitch in and do their share, but they don’t, and furthermore, the church today is not constructed the way it was back then.
So until you are willing to sell your house and your land and donate it to the church and share everything you have with the church on top of working a job outside of the church and donating a good portion of your time to the church, then maybe it is time to support your pastors who often ARE bi-vocational, working 50-80 hours in the church and then working another job on top of that where they end up neglecting their families.
Be the change you want to see. Until you are willing to live the destitute life you expect of your pastor, don’t expect it of your pastor (being that the body of Christ are all supposed to be sacrificial, giving of all they have to support one another).
Amen! Amy, Amen! We have been in this cycle for nearly twenty-five years, and we serve where we are called. Blessings to you and your husband.
I think the issue is that pastors get paid for doing what ALL christians are required to do. Why don’t I get paid for sharing the gospel with my neighbor?
Paul was not a pastor, but a missionary (support of missionaries is something I can get behind). 1Timothy 5 in no way supports the paying of pastors, unless you also want to give a salary to all the widows in your church too.
Basically if you want a New Testament church, you need to all contribute (yes, some may preach) but all believers contribute and any money given is distributed to the needy outside the church – Don’t get me started on the tithing scam in churches today!
Pastoring was never meant to be a salaried vocation, and this is one of the biggest deceptions in the church today.
Blessings
Very few “Christians” actually accept responsibility for the church. They are not required to be there every week and many that are, are paid. Also, pastors are the shepherds of the church and called to raise leaders in the church. Until you take on the responsibility of a pastor, don’t bash their salary. Not all pastors make money and not all pastors make enough to support themselves. There should be a cap on salary, yes but it should not be taken away. Also, Christians are not “required” to do anything but trust in Jesus. We are called and he leaves it up to us to answer and respond. It should come from the heart. Tithing is not a requirement and if you do it reluctantly then it is not a tithe of the heart and you are trying to be saved by works which is not the way. We are saved by grace and tithing is our way to show God that we want him in every part of our lives, including the finances. Godspeed and I pray your heart is changed to understand the true meaning of the church and tithing.