Preparing…

Process of extending the call:

  1. Presbytery approves PNC’s candidate
  2. PNC calls you and shares effective salary* offer (all cash payments and housing allowance)
  3. You accept (usually within a week)
  4. PNC tells Presbytery and receives approval of candidate
  5. PNC tells session followed by the congregation that it’s you

Our very own, Susan Fox, will explain some of the nuances of a clergy salary below. If you prefer to read this info, keep scrolling down for a summary or download the accompanying PDF here for detailed examples and information.

Average effective salary range 2016 (for a pastor with <6 years service)

  • Solo pastor of a 50-100 member church: $47,863.16
  • Solo pastor of a 101-200 member church: $51,950.71
  • Associate pastor of a 201-500 member church: $52,087.13
  • Associate pastor of a 501-1000 member church: $54,388.36

*Understanding your effective salary is important, because your Board of Pensions benefits are based on this salary.

Housing:

A housing allowance must be designated in advance (cannot be retroactive)and should cover all costs of maintaining a home (e.g. mortgage or rent payments, taxes, repairs, insurance, furnishings, utilities,
upkeep of lawn, etc.). Prevent renewal gaps by declaring housing allowance from a set date “and in all future years until amended.” Remember that you, the minister, are responsible for documenting actual household expenses. However, if the designated allowance exceeds that which was actually spent on housing, the excess must be reported as taxable income.

US tax code allows ordained ministers to exclude some or all of the cost of providing their principal residence from federal income tax.

Unlike homeowners, ministers living in manses do not build equity in their homes. Many churches help compensate for that by paying an equity allowance that is not subject to federal income tax.

Compensation Packages:

  • Cash compensation: cash salary and housing allowance, plus cash equivalents such as the Social Security offset.
  • Benefits: pension, life insurance, disability, and health insurance.
  • Reimbursement of job-related expenses include reimbursement for work-related travel, books, and education.

NOTE: The way you allocate compensation between these three categories has a significant impact on the taxes that must be paid.

Don’t be afraid to negotiate! Moving costs and insurance augments are negotiated items. The Board of Pensions offers members optional coverages such as dental and supplemental life insurance for members and their families. If you elect to participant in these programs, you must discuss who will pay for the additional cost of the coverages. Be aware of other allowances as well — while a car allowance may seem appealing because the money is given as an advance, any unspent portion must be refunded, whereas a professional expense allowance can cover reimbursement for car expenses, air travel, lodging, conferences, gifts, entertainment, books, supplies, and any other legitimate ministry-related expenditure.

Other Suggested Benefits*

  • Moving Costs: May be provided. Know maximum amount allowed and the process to be followed (e.g. number of bids).
  • Days Off: Churches should grant (and pastors should take) 1.5 – 2 days off each week.
  • Vacations: Pastors generally get at least four weeks of paid vacation per year, with freedom from all parish responsibility during that time.
  • Continuing Education: Churches usually grant two weeks study leave, including weekends, each year. Continuing education time should not be considered vacation.
  • Sabbatical Leave: Sabbaticals are normally three months at full compensation, every five to seven years.
  • Parental Leave: Generally, women pastors, at the birth of a child, get a 2-3 month maternity leave at full salary and benefits. A male pastor should be encouraged to take at least 2 weeks paternity leave at full salary and benefits. Pastors should be provided at least 2 weeks leave at full salary and benefits at the time of an adoption.
  • Personal/Compassionate Leave: Allowance should be made for the pastor to be with his or her immediate family at times of special celebration such as weddings or graduations and at times of personal emergency or unusual family responsibility. Paid personal leaves would normally be limited to a period of 5-7 days per year.
  • Military Leave: Allowance should be made for a pastor who serves in the US military to attend required service.

*Adapted from the compensation guidelines 2007 from the UCC