Leadership Journal

About half the nation's full-time pastors report they received no salary increase in the past year, continuing a downturn in salaries among top leaders in churches, according to a new survey published by Christianity Today International and Leadership. In fact, the extensive survey, published in the 2010-2011 Compensation Handbook for Church Staff, shows a slight decline or stall in pay levels for the majority of all church staff positions surveyed.

"While offerings remained relatively steady for many churches through 2008," said Dan Busby, president of the Evangelical Council for Financial Accountability, "by early 2009, churches began feeling the impact of rising unemployment in the offering plates. The impact on salaries, shown by this survey, is simply part of the larger picture of the effect of the economy on churches."

Total compensation for all lead pastors (combined solo and senior pastors' data), including housing, insurance, and retirement benefits, was down about 2.4%. Solo pastors lost the most, about 6.6%, which averaged more than $300 per month in salary and benefits last year.

"Fringe benefits are often cut along with salaries," said Busby. "Because many fringe benefits are tax-free or tax-deferred, there is a multiplier impact when some benefits are cut (such as church-provided health insurance). First, church staff must pay the costs formerly covered by the church and then the costs must be paid from after-tax dollars instead of pre-tax dollars. In many instances, it's better stewardship to reduce pay and maintain full fringe benefits instead of cutting fringe benefits and sustaining pay levels."—Eric Reed