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Compensation Guideline Overview for Rostered Leaders
Rocky Mountain Synod of the Evangelical Lutheran Church in America

Guidelines for Pastors
 Information on Part-Time Ministry, Sabbaticals, and Retirement
 Guidelines for Diaconal Ministers, Deaconesses, and Associates in Ministry
Worksheet for Salary Compensation Package
 

Introduction Congregations receive their pastors as servants of Christ and proclaimers of the Gospel, and similarly they receive their other ministers and staff members as persons entrusted with a particular ministry in service to the Gospel. The Apostle Paul writes that "the Lord commanded that those who proclaim the Gospel should get their living by the Gospel." (I Corinthians 9:14). The Rocky Mountain Synod offers these guidelines to congregations to assist them in determining adequate and fair compensation for those among them who labor in the Gospel.

Pastors, Associates in Ministry, Diaconal Ministers and Deaconesses are all identified in the Evangelical Lutheran Church in America as rostered leaders. They have met criteria established by the church to assume professional offices in our congregations. They bring to their called positions special training, qualifications, and the approval of the wider church. Because we call them to service, we must sufficiently compensate them. Rostered leaders must be able to provide for their economic needs. The ethics of ministry do not permit our leaders to be mercenary nor should they depend on discounts, special gifts or honoraria. They need to know they have an honest and dependable income for their contribution to the congregation’s ministry.

 
 

Base Salary Guidelines for Rocky Mountain Synod Pastors

For each year of service, an increase in base salary is recommended. The increment is smaller for 21 years of service and above.

An additional 30% for housing is to be added to the base salary figures (worksheet link below). The 2012 Guidelines for Pastors file does not include the housing allowance.

2012 Guidelines for Pastors

 

A. Additional Education

Add 7% of the figure from the chart for 450 hours of continuing education or a degree beyond the Master of Divinity degree.

B. Responsibilities

Add 7% of the figure from the chart for pastors leading congregations averaging over 225 at Sunday worship. Use this figure for team leader, and not for associate pastors.

C. Merit

The pastoral call generally includes primary responsibilities as preaching, leading worship, teaching, pastoral care, management, leadership development, and stewardship education. Pastors demonstrating a particular excellence in one or more areas may receive a merit increase.

D. Additional Pension Contributions

When a congregation is unable to meet compensation guidelines, they should consider paying to the Pension Fund ( Additional Pension Contributions) on the basis of the guidelines for the appropriate number of years of service.

 
II   Second
     Career
     Pastors 		Many rostered leaders come to their call from other careers, bringing a variety of experience to their ministry. Congregations might recognize this experience by adding it to the years of ministry experience for purposes of determining salary. Some professional skills translate more directly into ministry activities than others.

 
III  Social
     Security
     Allowance		 While most employers directly pay half of an employee’s Social Security, churches are not allowed to do this for ordained clergy. Pastors will pay 15.3% Social Security tax on income + housing + social security allowance. The Congregation should consider up to 7.65 % of Salary and Housing in Social Security Allowance in order to offset this significant tax burden.

 
IV  Housing
     Allowance		 A housing allowance or adequate parsonage should be furnished for pastors.

In the case of a housing allowance, the allowance should be approximately 30% of the salary figure, or the fair rental value of the home, including utilities, furnishings, upkeep, and other expenses.

If a parsonage is provided, the congregation is encouraged to provide an annuity for the future housing needs of the pastor at retirement. Some congregations have established a "Housing Equity Account" by making additional employer contributions to the ELCA Optional Pension Plan.

 
V   Pension and
     Health
     Benefits		 The congregation shall provide amounts for the pension and health plan through the ELCA Board of Pensions. The minimum amount is determined by the salary + housing + Social Security amount. In the case of a parsonage, 30% of the salary is used for housing. This amount is multiplied by the appropriate percentage to determine the cost of participation in the plan. Percentages vary according to the number of dependents in the plan.

ELCA Board of Pension contribution rates are available online

Online calculators are available on the Board of Pension's web site to help with your budget process.

The ELCA provides health, dental, and death benefit compensation for rostered persons and lay workers in the ELCA. The Board also oversees the ELCA Pension Plan.

 
VI   Sick Leave Congregations are to provide sick leave up to eight weeks with full salary, housing and benefits, and provision for partial disability thereafter as coordinated with the ELCA pension and benefit guidelines.

 
VII  Disability Congregations may wish to develop explicit written policies relating to permanent disability. In case of disability, it is expected that the congregation will pay full compensation and benefits for the first 60 days, at which time the disability benefits of the ELCA Pension Plan go into effect. Any period of disability is based on a physician's recommendation.

ELCA pension benefits coordinate with the benefits of Social Security or other government benefits.

 
VIII  Parental
       Leave		 Parental leave of up to six weeks should be provided with full salary and benefits for parents when a child is born or adopted.

 
IX   Vacation A paid vacation of at least four weeks, including Sundays, shall be granted to the pastor and the cost of pulpit supply for these absences shall be borne by the congregation. Time spent in outdoor ministries or retreats for youth, adults or family groups should not be considered as vacation time when it is part of the church program. A pastor does not work a five-day workweek as many persons do. Pastors work many evenings and most weekends. The Pastor is on call 24 hours a day and does not have the same sense of "break" for a weekend. Furthermore, a pastor's busiest times of the year are those often considered holidays and family times, namely Christmas, Easter, Thanksgiving, etc.

Four weeks of annual vacation is the entry level standard in the ELCA. Many congregations grant additional vacation based on length of service in the congregation.

 
X   Expenses
     Supporting
     Ministry

 

 A. Continuing Education

Continuing education time should be provided for pastors for updating skills and for professional growth in order to strengthen their ministries. This time should be considered as necessary for improving and building ministry. It is not vacation time. A minimum of two weeks (which may include weekends) and $800 should be granted annually for continuing education, accumulative up to three years. The ELCA expects a minimum of 50 contact hours annually in continuing education. A contact hour is defined as a typical 50 minute classroom instructional session or the equivalent. Pastors should be in conversation with congregational leaders about their continuing education plans and goals.

B. First Call Theological Education (FCTE)

New seminary graduates are now required to participate in First Call Theological Education, a program adopted by the ELCA Assembly in 1995. A congregation which calls a new graduate will be expected to contribute to the cost of this program. Details are furnished with call documents.

C. Automobile Expense Reimbursement

Automobile expense and other work-related travel are a business expense for the congregation and should not be considered as salary. Some examples of reimbursement are:
1. The congregation reimburses for actual business miles based on current IRS automobile guidelines.
2. The congregation purchases or leases a car and assumes total expenses.

D. Professional Expense Allowance

Professional expenses incurred in the performance of the pastoral office should be shared by the congregation. In addition, the congregation should pay all expenses incurred by the pastor for attending required meetings and events. Attendance at the annual Synod Assembly is constitutionally mandated and expenses should be paid by the congregation. (The Rocky Mountain Synod generally provides travel equalization funds.) Attendance at the annual Synod Theological Conference and conference retreats should also be supported by the congregation.

E. Technology Tools

In many places use of technology enhances the effectiveness of ministry by providing for better use of time and by making a pastor more accessible. Legitimate expenses incurred by a Pastor for legitimate church related activities should be reimbursed. Examples include cell phones, and even computers for email and internet prayer groups. Unless otherwise agreed to, it is the expectation that such equipment will remain with the congregation or be purchased at current market value by the pastor.

 
XI   Weekly
      Time Off		 Church work requires a great deal of evening and weekend involvement. In order to reasonably set expectations for the pastor, it may be useful to think in terms of blocks of time. Each day may be divided into three blocks: morning, afternoon, and evening. A seven-day week consists of 21 time blocks. A reasonable expectation of full time service might be 15 time blocks. Weekly time off to provide a normal opportunity for renewal, refreshment, and personal business would usually involve 6-7 time blocks per week. Arrangements should be flexible for both the pastor and the congregation, but should also provide for emergency pastoral care when the pastor is unavailable. Clearly defined expectations of time off are important for both the pastor and the congregation.
 
XII   Periodicals,
       Books, and
       Publications



 		 Expenses acknowledged by the IRS such as periodicals, books and publications should be shared by the congregation. It is recommended that congregations provide at least $250 annually.

 

 
Part Time
and Temporary Ministries

 

A. Part-time Staff

Part-time staff should have consideration for salary and benefits corresponding to the duties, amount, and length of service.

B. Interim Clergy

Interim clergy serving in a congregation during pastoral vacancy shall be compensated as agreed upon by the Bishop, the Church Council, and, in the case of interim staff, the Senior Pastor of the congregation.

C. Sunday Supply

The new guidelines are as follows: supply pastors are to be compensated at the rate of $150.00 for one service and $50 for each additional service on the same weekend. In addition, round trip mileage at the prevailing rate of 55.5 cents per mile is suggested. A congregation would also provide lodging and expenses if an overnight is required.

Other services such as weddings, funerals, etc. should be paid at $100 per service, plus mileage. Such occasional service payments are in addition to any honoraria the pastor might receive.

 
Sabbatical
Guidelines		 Life-long continuing education for rostered leaders is critical to sustained vitality for ministry. Congregations of the ELCA have long been encouraged to provide time and financial assistance to enable ministers to maintain and improve their skills. From time to time leaders need extended time for study, personal growth, reflection and renewal, without the demands of a regular schedule. The ELCA recommends sabbatical leave at regular intervals, and it is the policy of the Rocky Mountain Synod to encourage sabbatical leave after six years of service in the same call. Experience has shown that the congregation's ministry directly benefits from such study, growth, and renewal. All parties benefit.

A sabbatical will normally be for 12 weeks (including the two continuing education weeks normally granted). Vacation should not be included as sabbatical time. The sabbatical leave may be split into two blocks of time, which do not have to be consecutive, but shall be taken within a twelve-month period from the beginning of the first block of time.

Full-time pastors, associates in ministry, diaconal Ministers, and deaconesses are eligible for sabbatical leave.

Planning for sabbatical leave should begin at least a year in advance. Detailed sabbatical guidelines are available from the Rocky Mountain Synod website.


 
Other
Considerations		 A. Worker's Compensation

All congregations should make inquiry into State Worker's Compensation laws since definite liability accrues to the congregation in case of accidental death or disability.

B.  Supplemental Disability Income Insurance

Congregations may want to purchase a supplemental disability income insurance plan for their workers, coordinated with the disability insurance plan already provided by the ELCA.

C.  IRS Tax Regulations

Congregations, Pastors, and lay rostered persons are facing increasingly complex IRS tax regulations. You are encouraged to obtain expert and up-to-date advice for guidance in tax reporting. Congregation councils must annually approve allowances for housing, ministry expenses and unreimbursed medical expenses in order that these be legally excluded from income for IRS reporting.

D. Serving Under Call

"An ordained minister, serving under call, who either leaves the work of the ordained ministry or engages in another occupation without consent of the bishop of the synod shall cease to be an ordained minister of this church. The ordained minister's name shall be removed from the roster of ordained ministers by the bishop of the synod, who shall report such action to the secretary of this church and to the next Synod Assembly." ELCA Manual on Policies and Procedures for Management of the Rosters.
 

 
Guidelines for
Retired Pastors		 Information for Retired Ordained Ministers is online.

The service of retired pastors is governed by the Constitution for Synods, which describes the role of ordained ministers in congregations which they do not serve: "Ordained ministers shall respect the integrity of the ministry of congregations which they do not serve and shall not exercise ministerial functions therein unless invited to do so by the pastor, or if there is no duly called pastor, then by the interim pastor in consultation with the Congregational Council." (S14.14 in the Constitution for Synods of the Evangelical Lutheran Church in America)

 


 
   
Salary Guidelines for Lay Rostered Persons The salary guideline figures for lay rostered persons differ from ordained guidelines. Non-ordained professionals serving in the church are outside Internal Revenue Service clergy categories. Thus, the salary figures below are all inclusive. Lay Rostered persons do not qualifiy for housing allowances; therefore, the base salary appears to be higher than the base salary for clergy.  However, other merit increases may be added. Generally, vacation, sick leave, pension and health benefits, as well as sabbatical benefits are identical to those listed under pastoral salary considerations.

2012 Salary Guidelines for Lay Rostered Leaders
 

Other Considerations
Congregations are required to pay Social Security taxes for all lay employees, and to file federal tax W2 forms for lay employees.

The congregation shall budget for and participate in the ELCA Pension, Medical, and Dental Plan for rostered lay persons according to the terms of the plan.

Continuing Education funds and time should be part of the compensation of lay rostered persons.

Generally Sections VI through XIII above apply to lay rosters, including First Call Continuing Education.

 



Worksheet
for Salary Compensation Package





1.  Base Salary from Guideline Tables
 
2.  Additional Education ( Add 7% of line 1) only for those with 450 hours of continuing education or a degree beyond M.Div.

3.  Worship Attendance
    (Add 7% of line 1 for average over 225)

4.  Merit, Cost of living, etc.

5.  Sub Total of lines 1,2,3, and 4

6. Housing Allowance (add 30% of line 5)
For Pastors only, add nothing for lay rosters

7. Social Security Allowance
   (up to 7.65% of line 7) 
For Pastors only, Congregations pay withholding for lay rosters.

8. Sub Total of lines 5, 6 and 7.


9.   Continuing Education __________

      Auto Expense            __________

      Professional
      Expenses, Books      __________

       Technology tools       __________

       Other                       __________                                                        TOTAL for #9


10.  ELCA Pension and Health Benefits
(A percentage of line 7+8, according to online calculator)

line 7 plus line 8 = ___________________



TOTAL COMPENSATION
 



1. _______________

2. _______________



3._______________

4._______________


5._______________


6._______________


7._______________



8._______________














9._______________



10._______________




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