Minister’s Compensation Guide
Compensation and benefit planning for ministers and non-ordained employees can be simultaneously straightforward and confusing. Develop a comprehensive compensation and benefits plan that meets the needs of the congregation and the minister with Church Benefits Board’s Minister’s Compensation Guide.
Building a Competitive Compensation Package
Designing a compensation package is about more than just numbers—it’s about stewardship, retention, and honoring the call to leadership. We know that for pastor search teams and finance committees, navigating benefits can feel overwhelming. In this webinar recording, we’ll walk you through how to build a competitive package that reflects your church’s values, attracts top-tier talent, and ensures your minister is well-supported for the long haul.
Key topics covered:
- 00:00 – Introduction
- 02:19 – The “Lump Sum” Trap vs. Intentional Compensation
- 05:09 – Anatomy of a Package: Income, Benefits, & Expenses
- 07:31 – How to Handle the Minister’s Housing Allowance
- 10:48 – Dual Tax Status: Employees vs. Self-Employed
- 12:13 – The SECA Offset: Helping with the Tax Burden
- 13:53 – Retirement Strategies: Reaching the 20% Goal
- 16:30 – Health Insurance Options (Small Groups & ICHRA)
- 18:20 – Life & Disability Insurance Coverage
- 21:10 – The Theology of Rest: PTO & Sabbath
- 22:50 – Normalizing the Compensation Conversation
- 27:18 – The True Cost of Recruiting & Retaining Talent
Frequently Asked Questions
How is a minister’s housing allowance determined?
A minister’s housing allowance must be officially designated by the church in advance of payment. It is generally the lesser of the fair market rental value, the amount designated by the church, or actual expenses. See our Housing Allowance Guide for a full breakdown of the rules.
What is a SECA offset and why is it important?
Since ministers are considered self-employed for Social Security purposes, they pay the full 15.3% SECA tax. A SECA offset is an optional taxable reimbursement (usually 7.65%) provided by the church to help cover the employer’s portion of these taxes.
What is the recommended retirement contribution for clergy?
We recommend a target of 18-20% of total compensation (including housing) to ensure long-term financial security. This is often achieved through a combination of church basic contributions, matching, and personal salary deferrals.