Pastors

How to Create an Employment Agreement

A youth pastor agreement as a model.

The local church in seeking to fill a staff position has a myriad of details and decisions to ponder before the calling of the right candidate is concluded. Once the selection has been made, however, the specific details of the “call” or the employment agreement are often hurried over and mishandled.

For example, an employment agreement between a church and a youth pastor takes careful thought. Many times the committee members extending the call are rookies at the task, and would welcome any help or suggestions. With careful thought, an employment agreement can communicate to both the church and the youth pastor a framework of understanding. Hopefully, this will help extend the youth pastor’s ministry past the 18-month average stint (or is it now eight months?).

The agreement has two categories: Basic Benefits and Optional Benefits. Some churches will want to expand the list while others might delete some options. Additional benefits can always be added in future years as the youth pastor gains experience and then experiences ministry growth.

The Basic Benefits should be viewed as the “bare essentials” for the youth pastor. Obviously, the numbers will change depending on many factors such as church size and budget, inflation, experience, and other pastoral staff benefits.

The list of Optional Benefits shows church committees the wide range of special compensation items. This benefits package may be too generous for many churches, yet it allows a committee to consider many creative ways to care for their youth pastor. (Some senior pastors will probably ask where they can apply for this job!)

The use of a written employment agreement has two main values. First, it shows what benefits are included. Second, it shows what benefits are not included. This latter feature helps minimize the all-too-frequent misunderstandings between boards and pastoral staff members about assumed benefits and privileges. Churches and candidates that agree in writing and in advance on the compensation package will have a happier and longer life together.

The bottom line for a youth pastor’s compensation package is “you get what you pay for.” If the church’s youth program is to be a dynamic and forceful ministry to tomorrow’s church leaders, competent pastoral care for youth must be adequately paid and appreciated. The following employment agreement format is designed so that a church committee may adapt portions of it for their own use.

“First Community Church” is a congregation of about 3,000 active members, a $1 million budget, and a large staff.

John Doe, the youth pastor candidate, is 30 years old, an ordained college and seminary graduate, married, and has two children. He has 6 years experience as a youth pastor in two other churches.

Employment Agreement Between

John Doe and First Community Church

Dear John:

At our church’s annual meeting last week, the congregation voted to extend to you the call of youth pastor of First Community Church. As we discussed with you and your wife when you interviewed here, the following statements detail our salary and benefits package for your first 12 months of ministry here.

Believing that a servant is worthy of his hire, the church wants to help in thoroughly equipping you to minister most effectively to our youth, their parents, the church body, and the community. We would like to think that your salary and benefits resemble the average salary of members in our church of like age, education, position, and responsibility. It is not our desire to let you get by on a meager salary because “you’re in the Lord’s work.”

We trust the Lord will lead you to accept this call and come to our church family with positive expectations. Although you’ll be ministering to us, we would also want to safeguard for you a stable family life. We want you to have financial stability and be secure enough here so this will not be a short-term ministry. We’d also like you to be a respected member of our community. You should plan on training and delegating much of the work to our lay leadership-our church doesn’t want a “workaholic.”

The following items are presented for your careful consideration:

Basic Benefits

A. Salary and Benefits

1. Salary will be $15,000 per year. This may be divided between salary and housing allowance for tax purposes since you qualify as a minister with the Internal Revenue Service.

2. A health and disability insurance plan is provided for you and your family. There is a deductible of $300 per person on the health insurance. Included in this policy is $5,000 of life insurance on you. Specific details are available.

3. The church pays the employer’s portion of social security taxes and the state workman’s compensation premiums, as required by law. However, you may qualify to be exempt from social security, or you may prefer to pay it yourself as a self-employed person/minister.

B. Relocation and First Month

1. All moving expenses here will be paid by the church including commercial moving and packing costs, gas, meals, and lodging for your family en route, and any telephone costs related to your move.

2. Travel expenses prior to your move for you and your wife to locate a home here will also he paid.

3. During your first month here, you will not be responsible for any programs or ministries. That time is to be used to get acquainted, set up your office, and research the previous youth ministry.

C. Professional Expenses

1. Church-related use of your car will be reimbursed at a per-mile rate (currently at 15¢).

2. Out-of-pocket expenses will be reimbursed if they are within your approved youth budget.

D. Vacation and Time Off

1. Vacation will be whatever you had last year, or two weeks-whichever is greater.

2. One day of vacation will be added each year up to a maximum of three weeks.

3. Vacation time may not be saved for more than one year.

4. Nine holidays are given this year as listed in the staff policy manual.

5. You must take one day off each week

during the week, and you are encouraged to take a second day off each week whenever possible.

E. Working Relationships

1. You will be directly responsible to the Director of Christian Education.

2. A private office will be provided with necessary supplies, equipment, and phone.

3. The written job description you were given will form the basis for your work this first year.

4. There will be weekly meetings with the DCE for purposes of review and evaluation, goal setting, and sharing.

5. Your work will be evaluated by the DCE on a semi-annual basis with both written and verbal review.

6. Any serious conflicts that may develop between you and your superiors that are not easily resolved may be taken to the personnel committee of the church board.

7. An annual written report and evaluation of your ministry, along with your goals and objectives for the next year, must be submitted to the church board each December.

F. Community and Family Responsibility

1. Take time to be with your wife and family.

2. Be an active participant in the local ministerium or youth pastors fellowship.

3. While we encourage your wife and family to be active in the life of the church, we don’t expect you to drag them along to every meeting or event “because the church members expect you to be there.”

G. Continuing Your Ministry With Us

1. Increases in salary, or special bonuses, shall be considered annually by the personnel committee in consultation with the DCE and pastor.

2. This agreement shall be updated and signed by you, the DCE, the pastor, and the church board chairman each year.

3. It is understood that either you or the church may terminate your ministry here by giving 30 days written notice.

We look forward to a positive response from you and your family, and request that you give us written notice of your answer within 15 days of today’s date, If you have additional questions, please call me or the DCE.

Cordially yours, Roy N. Nelson

Personnel Committee Chairman

The following Optional Benefits could be adopted for various church situations.

Optional Benefits

A. Salary and Benefits

1. The church is willing to loan you up to $5,000 at 11% annual interest for a down payment on a home. This would be paid back in monthly installments, or the entire amount would be due when you leave the ministry of this church.

2. Beginning with your 25th month of employment (and continuing thereafter), the church will contribute an additional 10% of your base salary to a retirement plan of your choice.

B. Relocation and First Month

Upon arrival, you will receive a cash allowance of $200 for “resettlement costs” such as phone installation, drivers’ licenses and license plates, utility company deposits, and miscellaneous home items and adjustments.

C. Professional Expenses

1. An annual expense account of $500 will be provided for:

a) Food costs of entertaining and hosting youth meetings in your home

b) Meals in restaurants on church business c) Activity, social, and retreat fees for you and your wife when you are required to attend

d) Babysitting costs for your children when both you and your wife are encouraged or expected to attend activities, meetings, retreats, and conferences

2. An education and enrichment budget of

$500 may be used for:

a) Books, magazines, and professional journals

b) Travel, fees, and expenses for at least one professional seminar or conference a year

c) Tuition for an approved program of continuing education or work on an advanced degree (not to exceed 15 credit hours or $300 per year)

All professional expenses are subject to written guidelines of the church board. Major expenses such as tuition and conferences should be planned in advance with the DCE. All requests for reimbursement of expenses must be submitted on the appropriate form and approved by the pastor and treasurer.

D. Vacation and Time Off

1. Seven days each year are provided for your ministry to other groups such as camps, speaking engagements, consulting. This time may not carry over from one year to the next.

2. Beginning with your third year, a week of sabbatical shall be given each year. These weeks may be saved up. The use of a sabbatical shall be for study and research, and must be approved by the pastor.

E. Working Relationships

1. The church will provide you with a secretary for 20 hours per week for the first year.

F. Community and Family Responsibilities

1. The church provides a membership for all staff members at the YMCA.

2. We encourage you to join a community service organization at our expense.

3. We encourage you to participate on denominational boards and committees, or to volunteer your leadership for a local Christian organization.

Expenses incurred by your activity in community or other Christian organizations shall be covered by the church as planned from year to year.

G. Continuing Your Ministry with Us

1. To provide you with the necessary resources to continue your ministry at the church, an automatic cost-of-living increase in salary will be given each year, based on the statistics for our city as provided by the U.S. Department of Labor’s Cost of Living Council.

Benefits Not Included at this Time

The following benefits are listed below to be sure you understand that they are not included in your benefits package:

1. Dental insurance for you or your family.

2. Financial help if you experience difficulties in selling your present home.

3. Expenses for your wife at conferences or seminars she is not required to attend.

4. The church van is not available for personal use.

This sample employment agreement can pave the way to an effective ministry for any church position. If the church and the candidate will discuss these suggestions carefully, the work of the ministry will not be sidelined because of inadequate personal finances, irregular time off, or lack of long range family security. In some instances, a candidate may determine that the church is offering as much as is possible, but the compensation is still inadequate to care properly for his family. The candidate must communicate this to the church in a frank and loving way.

If more in-depth help on this subject is desired, read The Empty Pulpit by Gerald W. Gillaspie, Moody Press, 1975. Open communication will help avoid the ‘after-the-honeymoon” conflicts over benefits and policies that too often are never spelled out in advance.

Copyright © 1980 by the author or Christianity Today/Leadership Journal. Click here for reprint information on Leadership Journal.

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