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Home/Churches and Ministries/Five Things You Should Know about Pastors’ Salaries

Five Things You Should Know about Pastors’ Salaries

The reality is that most of the some 400,000 pastors in America are not overpaid; indeed many are underpaid.

Written by Thom Rainer | Friday, December 21, 2012

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.

1.  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.

2.  There are many resources to find out what the fair compensation for a pastor should be.

3.  Many pastors request no raises but would still appreciate one.

4.  Many pastors are under extreme stress because they do not have adequate income to meet their financial obligations.

5.  Some pastors leave their churches because of pay issues.

Read More

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