The Average Salary of a Minister, Pastor, Preacher and Priest
Ask a priest, pastor or minister why he entered church ministry and you'll rarely hear the word "salary." For most ministers, the salary they earn is secondary to being able to do the work they feel called to do -- serving people in need. Nevertheless the clergy do have financial needs, and churches typically provide them with a salary so they can focus all of their energies on ministering to people.
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National Average Salary
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According to the Bureau of Labor Statistics, the average salary of clergy nationwide -- ministers, pastors, preachers and priests -- was $46,960 as of May 2009.
How Clergy Salaries Are Established
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Most clergy salaries are established by the local church a minister serves, though some denominations provide salary guidelines that match church sizes with appropriate compensation levels. Some churches base their salaries primarily on a pastor's years of education and ministerial experience, while others estimate an appropriate salary by considering what similar secular occupations such as teachers or counselors make. Still others first determine how much they can afford to pay a minister and then seek out a pastor who fits their budget. Finally, many churches also consider benefits offered and a variety of other factors in their compensation process.
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Factors That Affect Clergy Salaries
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A wide range of factors impact the salary of a particular preacher or minister. Larger, well-established churches tend to pay more than do smaller or younger churches. A congregation's socioeconomic status also plays a role in the salary a church can afford to pay. Ministers with higher educational degrees and more years of ministry experience tend to make more than those without higher degrees and with less years of ministerial experience, and those serving in areas with higher costs of living tend to earn more than those living in lower cost of living areas. Other staff salaries and the minister's family size may also play a role in determining a final compensation package.
Housing Allowance
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In order to stretch a minister's salary further, churches can designate a portion of the pastor's salary as a "housing allowance," even if that designation constitutes a majority of the overall salary. Housing allowance is not considered taxable income by the Internal Revenue Service, allowing the minister to pay less in taxes and keep more of his income.
Other Elements of Compensation
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Many church compensation packages include health and disability insurance, retirement accounts, comp time or shortened work hours, travel expense reimbursements, non-cash gifts, extended vacation times and periodic sabbaticals.
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