Clergy Compensation Packages: Negotiating Beyond Salary

Though the call to lead a church is joyful, many clergy may not know what to expect when receiving a compensation package or how to negotiate beyond their salary. In preparation for living out the ministry of God, clergy frequently overlook non-salary negotiables that can be beneficial over the long-term.

Clergy often find the word “negotiation” to be anathema, particularly when it comes to a church which they feel called to serve. Those who hire a clergyperson may often feel similarly about negotiation, believing that the decision to work for a church is primarily a spiritual choice.

However, the reality of a church vocation and agreeing on a compensation package should be rooted in transparency, fairness, and understanding between the church and the clergyperson. Scriptural lessons support this assertion as Christ taught, “the laborer deserves their wages” (Luke 10:7). The pastoral letter of 1 Timothy admonished, “Let the elders who rule well be considered worthy of double honor, especially those who labor in preaching and teaching” (1 Timothy 5:17).

Fair and just compensation packages should ideally contain: 

• a cash salary
• a housing/parsonage allowance
• Social Security/Medicare offsets
• an MMBB Comprehensive Retirement Plan, which features retirement savings, as well as life and disability insurance
• a reimbursement account for job-related expenses
• and health insurance 

Yet there are other non-salary items that both the church and clergypersons should expect to negotiate. Paid leave and a vacation schedule are basic elements of employment. However, for pastors, the time needed for rest, study, spiritual reflection, and renewal is often left out of the contract and negotiation conversation. Sabbaticals, retreats, and mental health time allowances should be included and discussed beyond salary negotiations. Agreed-upon sabbatical periods (e.g., after three, five, seven, or 10 years of service) and yearly retreats are not only warranted, but also help maintain the spiritual well-being of the pastor.

Moreover, the rise of mental health awareness among clergy foreshadows a shift towards churches and pastors proactively seeking mental health practitioners. Negotiating for mental health time allowances offers pastors and clergy opportunities to take the necessary preventative measures for their mental health and well-being. 

Frequently, ministerial job applicants and churches speak about the ability to be co-vocational or bi-vocational. For churches struggling to offer competitive compensation packages and pastors who believe that ministry extends beyond church doors, negotiating opportunities for the pastor to teach at a local college or university or consult with a non-profit is a way to overcome budgetary concerns. It also connects communities, institutions, and people beyond the church with the mission and ministry of the church.

To sum up, clergy seeking to experience the rewarding blessing of congregational ministry should feel empowered to negotiate beyond salary requirements. Churches seeking a candidate should expect to offer non-salary components of a compensation package that can help round out an offer.

The non-salary components demonstrate a willingness by both the clergyperson and the church to engage in a fruitful and long-lasting partnership with the congregation and the church’s mission. Non-salary benefits enhance the compensation package by recognizing the complexity and fullness of ministry, the openness to communicate about how best to achieve mutually agreed upon goals, and the value all parties place on transparent and fair compensation. MMBB believes that just compensation is vital to financial wellness and allows clergy to continue spreading the gospel without financial worries.