For many OP congregations, December and January are the season for annual congregational meetings and approving yearly budgets. If your church budget is like most, the biggest line item is probably pastoral compensation.
Churches have an opportunity not only to support a minister’s public ministry but to do so with generosity and joy. The principle of joyful giving is seen in 2 Cor. 9:6–14 when Paul is writing to the Corinthian church about their promised care for the gift of the saints. While Scripture certainly makes clear the obligation of churches to support their ministers (see 1 Tim. 5:17–18, Gal. 6:6, and 1 Cor. 9:8–14), how much better for the church to delight in the opportunity to provide for his and his family’s needs.
HOUSING, BENEFITS, AND INFLATION
One of the challenges faced in providing compensation to ministers in our modern economy is the ever-increasing complexity and cost of housing and employee benefits. Long gone are the days of the provided parsonage and inexpensive health insurance. In many areas of the country housing costs have exploded. Health insurance in particular can be one of the costliest considerations in supporting a minister and his family, especially if one or more members of the family have significant health challenges.
The U.S. Bureau of Labor Statistics reported earlier this year that benefits represent about 30 percent of total compensation for the average employee. This percentage should be kept in mind for considering sufficient compensation for a minister. In our day, compensation is more complicated than merely identifying what might seem at first glance to be a reasonable salary.
The Committee on Ministerial Care provides an online compensation tool on its website, opccmc.org, to help sessions, church treasurers, and congregations assess what might be appropriate compensation in their situation. Far from being a one-size-fits-all approach, the tool accounts for a minister’s years of experience, family size, and regional cost of living factors. Separate line items in the tool then provide for the opportunity to list housing allowance, health insurance, and other common benefits and reimbursements for a minister. The goal of the tool is to remove complexity and provide a reasonable estimate in ten minutes or less.
No discussion of pastoral compensation is complete without a word about inflation: $100 in the year 2000 is the same as about $183 today. The impact of inflation on ministerial compensation is such that paying a minister $65,000 in total annual compensation in 2000 is the equivalent of paying a minister about $115,000 in today’s money.
BREAK IT DOWN
One final recommendation from the CMC to churches as they compose their annual budgets would be to break the pastor’s compensation into separate line items rather than simply listing a total. One large number can create sticker shock for any of us if that is the only number we see! Instead, list each of the major components to help members understand not just what the pastor gets in his paycheck but also the parts that the church, like most employers, is paying on behalf of its employees. For instance, in the 2023 Survey of Ministerial Compensation conducted by the CMC, the average reported annual salary was $55,364, the average housing allowance was $33,378, and the average benefits amounted to $26,694, for a total compensation amounting to $115,436. This level of detail promotes understanding.
As your church enters its annual budget season, may these thoughts encourage you toward a joyful support of your minister or ministers and their families.