The Leadership Development Team of Mennonite Church USA provides guidelines for compensation of our pastors and conference ministers. The goal is to be supportive of ministers and their families and fair to congregations and conferences. Our commitment to quality ministry is reflected in part in the level of compensation and the process that is used in determining it.
Each year the worksheet and interpretive comments are updated and a base salary is suggested. Guidelines use education, experience, responsibility, and geographical location as factors in adding to the base salary. These guidelines serve as a place to start and are recommended as a goal for compensation of pastors in Mennonite Church USA. We say this knowing there are many dedicated pastors serving in our system who are self-supporting or bi-vocational. In these and other cases the guidelines will serve as a conversation starter. In these conversations generosity extended represents and cultivates the vital ministries we all value.
It is important to have adequate preparation time each year for completing the annual compensation agreement. “Negotiating the Pastor’s Salary” lays out some very helpful steps for pastors and congregations in this process. Particularly with persons new to pastoral ministry we suggest the topic of student debt be discussed in the negotiating process.
These salary guidelines are updated each year around April 1. However, with varying fiscal years, each congregation will have its own time frame for using these guidelines. The housing allowance for clergy has been in the news this past year with Judge Crabb of the District Court for the Western District of Wisconsin striking down the ministerial housing allowance as an unconstitutional preference for religion. However, nothing has been decided on in that case or nationally to date and advice we have received from our advisors from Everence is to stay alert to the discussion and the implications such a decision could have on clergy.
It is essential that financial arrangements are clear to all parties and written down. A sample Covenant of Understanding is available in a basic Word format, making it easy to customize. A second Word template allows the user to choose options and fill in their information.
Although worksheets for salary, benefits and expenses are in one document, it is important for church officials to separate these items when reporting budget and expenditures to the congregation. It is particularly important that financial reporting not leave the impression that expenses are part of a pastor’s salary.
Specifics for the 2018-2019 guidelines:
- The base salary and unit values have been increased by 2.1%. Together with a step increase for experience, salary increases from these guidelines will be in the 3.4% to 3.9% range for most pastors.
- The recommended IRS mileage reimbursement rate for 2017 is 58 cents per mile.
- Geographical units have not changed. Because the data source is expensive, current plans are to update geographical units again for 2020-2021. See the Interpretive Comments for more explanation.
- Salary calculation software (PC only) and/or a spreadsheet (PC and Mac) are available at www.manygifts.org/salaryguidelines without cost to member congregations and pastors of Mennonite Church USA. The salary calculation software makes it possible to add more detailed documentation for the calculations and does most of the calculations for you. In addition, the information can be integrated into a Covenant of Understanding. The spreadsheet is a simple way to calculate but does not include space for other documentation.
The goal of these guidelines is to help provide a financial guide that is supportive of ministers and their families and fair to the congregation in which they serve. With this end in view, these guidelines are offered as a resource for your congregation and conference in the coming year. As always, your feedback and questions are welcome.
Partners in the Call,
Associate Executive Director for Church Vitality and Engagement