How Much Should a Pastor Get Paid?

Jun 19

Financial planning tools like a calculator and documents, representing the budgeting process for determining pastor salaries.

First Church recently faced controversy when Pastor Ed’s salary, based on his previous church's pay, exceeded that of his female minority supervisor, prompting scrutiny from the Equal Employment Opportunity Commission (EEOC). This raises important questions about how churches should determine pastor salaries.

How Should a Church Determine Pastor Salaries?

Setting pastor salaries requires fairness, generosity, and thoughtfulness to ensure proper compensation while respecting both biblical teachings and legal guidelines.

1. Fair Compensation

A pastor's salary should align with their experience, education, and effectiveness in ministry. Churches must comply with fiduciary duties and be mindful of legal implications such as equal pay and discrimination laws. Additionally, ensuring the salary is fair helps honor the teachings of 1 Timothy 5:18, which emphasizes providing adequately for those who labor in preaching and teaching.

2. Generous Compensation

The Bible also encourages generosity in supporting pastors, as expressed in 2 Corinthians 9:11. Churches should demonstrate generosity by offering salaries that reflect the value and dedication of their pastoral leadership. A generous salary encourages pastors to focus on ministry without unnecessary financial stress.

3. Thoughtful Compensation

Salaries should be thoughtfully set within the range of the 60th to 75th percentile compared to pastors with similar credentials and in comparable church settings. This ensures the compensation is competitive and aligns with what other churches are offering in similar contexts.

Resources for Guidance:

To ensure the salary is both fair and competitive, use the following resources to benchmark salaries effectively:

LifeWay Resources: Visit the LifeWay Compensation Study for comprehensive insights into pastor salary trends.
Denominational Resources: Consult your denomination’s compensation guidelines for tailored advice that aligns with specific values and practices.

Make sure to combine salary and housing allowances when making comparisons to ensure accuracy.

Glenn S. Reynolds, DMin, Jd

Glenn is a speaker, ordained pastor, writer, and attorney living in Suffolk, VA. Before starting Reynolds Law Group, Glenn pastored one of the largest churches in America and was the Director of Church Planting for the Iowa Ministry Network. Glenn roots hard for the Kentucky Wildcats in basketball, the Baltimore Orioles in baseball, and the Iowa Hawkeyes in football.

To learn more about Glenn, you can read his full bio here.

You can find him on Instagram @glennsreynolds