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September 23, 2020
Church staff salaries can often be an enigma.
Should they be below industry standard—almost as if it were a service project?
Should they be above industry standard—since many of these church staff positions require 60+ hours per week and odd hours due to the nature of church life?
It’s very common for church staff to wonder what the industry standard is for others in their profession. What should their job offer include? How much should they get paid? Should it be more or less based on where I live? Does it depend on if. the position is with a small church or large church?
So many questions. Workers interviewing for church staff positions (and sometimes those hiring) don’t have a good sense of what they can (or should) negotiate for their own salary.
In this article, we will break down some popular realities that govern how much pastors make and why.
More than that, we will provide a full table that shows pastors salaries , depending on their job title and experience.
It’s a common misconception that pastors simply don’t pay taxes.
Many pastors do pay taxes, and opting out of taxes is now more often the exception.
If you take a pastoral job offer, you should not assume that your gross church salary will equal your net annual salary.
What money you receive as payment for your services will subtract local, state, and federal taxes (assuming you are paid via W-2), unless you explicitly “opt out” of such taxes.
And even still, there are strict conditions for opting out of these taxes as it relates to church staff members salaries.
Ensure with your local CPA and tax attorney that your conditions sufficiently meet those of the government for opting out of taxes.
The last thing you want is to spend 5 years in ministry, only to learn you have 5 years of back-taxes you have to pay.
It is especially critical to keep your eye on this if you are paid through a freelancer form like a 1099.
It’s just a fact.
On average, pastors who are officially “ordained” receive $5k-$10k more per year than the average pastor who is not ordained—no matter his or her title.
This is true even for youth pastors and music pastors, though it is especially true for senior pastors and executive pastors.
No, the pastor does not have to be a financial martyr.
In fact, the industry standard is that the pastor makes the most money in the church.
This is due to the fact that he must function as the church executive, leader, and ultimately bear the responsibility of navigating the church through all its difficulties.
The job title and job description of “Pastor” often pushes the boundary between professional and personal. When other staff can take time off and go home early, the bottom line always comes back to the pastor. If there is mismanagement, failure, or crisis, eyes look to him or her—and that is reflected in the average annual income of this job.
The average worker’s annual salary in the United States receives a 3.3% raise this year. In churches, that average church staff salary raise is 4.9% each year. This means that the industry standard for a church staff salary raise is about 4.9% year after year. (ChurchSalary) Consequently, if you make $50,000 per year, you are standing on solid precedent to request a $2,500 raise in the subsequent year.
Pastors who live in areas—inside or outside of the United States—with a high cost of living—particularly urban areas—make much more money than pastors living elsewhere.
Therefore, if you are interviewing for a church position in a major city in the United States, and the interviewing committee gives you a “national average” as a baseline for your projected annual salary, you should reply that the national average for a pastor’s church salary does not apply in a major city. For example (From Salary.com):
These numbers indicate that some full-time pastors could be making quadruple what other full-time pastors make in the same country, determined solely by the cost of living. church staff members salaries can be a tricky thing!
Pastoral compensation packages (and many other church compensation) usually include paid vacation, 401(k) matching programs (more often 403(b) in non-profit scenarios, which are very similar), retirement, and health insurance plans. For example, according to Christianity Today’s study published on Church, Law & Tax website, pastoral compensation packages often include a variety of benefits:
Top non-salary benefits for pastors:
Top non-salary benefits for church staff:
42.9% of church employees reported they work a second job, not because they want another job title, but because they have to—that is, out of financial necessity. Their church compensation just doesn't pay the bills.
Bi-vocational ministry is an increasing church staff modality.
These situations would account for the lower end of the national average (creating the overall average pastor salary of $49,837 ).
Some church staff members even make below minimum wage—including child-care workers (14.8% are paid below minimum wage) and custodians (6.3% are paid below minimum wage).
So, how much does a pastor make? Here is the juicy part.
Below is a chart that includes the Full-Time (FT) median and average church staff salaries of ordained and non-ordained pastors:
Editor’s Note: This post was updated on August 21, 2020 for accuracy and comprehensiveness.