Baptist and Reflector
Office and Custodial Personnel:
Compensation = Salary (Part-time salary is calibrated to reflect 50 weeks per year at median number of hours: 18)
Pay Package* = Salary + Retirement Benefits Paid by the Church + Insurance Paid by the Church
*The Employer portion of Social Security is not included in the figure for Pay Package. The study assumes that the church pays the Employer portion of Social Security for these employees.Ministerial Personnel (Non-Ordained Ministers):
Compensation = Salary (Part-time salary is calibrated to reflect 50 weeks per year at median number of hours: 10)
Pay Package** = Salary + Retirement Benefits Paid by the Church + Insurance Paid by the Church
**The Employer portion of Social Security is not included in the figure for Pay Package. The study assumes that the church pays the Employer portion of Social Security for these employees.
Ministerial Personnel (Ordained Ministers):
Compensation = Salary + Housing Allowance + Fair Rental Value of Church-owned Housing + Utilities for Church-owned Housing (Part-time salary is calibrated to reflect 50 weeks per year at median number of hours: 20)
Pay Package*** = Salary + Housing Allowance + Fair Rental Value of Church-owned Housing + Utilities on Church-owned Housing + Social Security Equivalent + Retirement Benefits Paid by the Church + Insurance Paid by the Church
***While the Social Security Equivalent could be included with compensation since it is taxable, the Compensation Study has chosen for a number of years to treat the Social Security Equivalent as a benefit so as to be consistent with the general treatment of Social Security for non-ministers. It is suggested the church pay the same percentage for Social Security for the minister that they would pay for a non-minister. Thus it should be budgeted and classified the same way as the regular FICA employer Social Security for non-ministers. The only difference for ministers is that it does become taxable.
This study assumes all ministry-related expenses are paid by the church using an accountable reimbursement plan and are NOT INCLUDED in the “Pay Package.” These include travel expense; expenses for conventions and continuing education; expenses for ministry-related books and periodicals; and ministry-related hospitality expenses. Amounts paid to cover these ministry-related expenses are IN ADDITION TO the above amounts.
Report Date: 9/26/2016
BRENTWOOD — The average compensation (salary and housing) and pay packages for senior pastors and staff ministers in Tennessee Baptist Convention churches exceeds the national average in most categories.
The 2016 SBC Church Compensation Study, a joint project of state Baptist conventions, GuideStone Financial Resources, and LifeWay Christian Resources, was released in early September. The biannual study collects compensation and congregational data anonymously from ministers and office/custodial personnel of SBC churches and missions.
Across the SBC, compensation for full-time church staff members has exceeded the cost-of-living increase over the past two years. Health insurance coverage, however, has declined, according to the 2016 study.
On the national level, the study reveals that compensation (salary plus housing) increased 3.4 percent for full-time senior pastors over the last two years, 4.3 percent for full-time staff ministers, and 2 percent for full-time office personnel. The U.S. Department of Labor’s Consumer Price Index (CPI) for the same two-year period increased only 1.1 percent.
Overall, the value of the entire pay package (salary, retirement, housing, and other benefits including insurance) for senior pastors (0.9 percent) has not kept pace with inflation, even though the pay package for full-time staff ministers (2.5 percent) and office personnel (1.5 percent) has exceeded inflation.
Only half of the churches participating in the survey provide health insurance coverage for senior pastors, down from 60 percent two years ago and 64 percent in 2012.
Scott McConnell, executive director of LifeWay Research, pointed out that despite increases in compensation, fair wages take into account wages at comparable churches, increased experience and education, and cost of living.
“While inflation has been lower this last year, it is still true that the dollars churches paid last year don’t buy as much,” McConnell said. “Without a raise, you are actually paying less.”
Nationally, senior pastors receive an average compensation of $65,072 and an average pay package of $76,863. In Tennessee, the average compensation is $70,418 and the pay package is $83,322.
The national average is based on 14,263 responses from 40 state conventions. The Tennessee average is based on 1,828 responses.
According to Gary Rickman, director of strategic relationships for the TBC, the greatest response to the survey came from Tennessee churches.
Nationally, senior bivocational pastors receive an average compensation of $21,783 and the average pay package is $23,600. In Tennessee, the average compensation is $21,315 and the pay package is $22,713.
Full-time ministerial staff across the SBC receive an average compensation of $59,905 and an average pay package of $73,567. In Tennessee, the average compensation is $65,642 and the average pay package is $80,281.
Bivocational ministerial staff across the SBC receive an average compensation of $13,828 and pay package of $14,305. In Tennessee, the average compensation is $14,946 and the average pay package is $15,195.
Nationally, full-time office personnel receive an average compensation of $34,184 with an average pay package of $39,739. In Tennessee, the average compensation is $37,231 and the average pay package is $43,041.
Part-time office personnel across the SBC receive an average of $13,042 in compensation, compared to $14,447 in Tennessee.
The great thing about the compensation study is that churches can run customized reports based on a number of factors such as membership, attendance, or budget, Rickman said.
He noted the study will help churches see how they compare to churches of comparable size and budget in compensating their ministers and church staffs.
Rickman noted that ministers and church staff deserve to be fairly compensated. “Pastors and staff members often are on call 24/7,” Rickman said. He encouraged churches to provide a good salary in addition to benefits such as insurance and retirement. “Most laypeople expect to be paid well and to have key benefits in their places of employment,” Rickman observed. “Why should ministers and church staff expect anything less?” he asked.
Anyone interested in the entire survey or those who wish to print out a customized report for their church can go to www.lifeway.com/compensationsurvey.
— Martin King of LifeWay Christian Resources and Lonnie Wilkey, editor of the B&R, contributed to this report.