No matter who recommends a raise, in 95 percent of churches the congregation offers final approval. Salary satisfaction varies. These percentages have been consistent since our 1991 study. Pay is keeping pace with inflation. The Consumer Price Index increased by 21.9 percent from 1991 to 1999, while the total compensation for senior pastors increased an average of 31.2 percent, and that of solo pastors rose 27.8 percent.
Bigger churches pay better.
But the dramatic difference in pay is noteworthy. Most pastors have pensions. All solo pastors in our study live in a parsonage or receive a housing allowance. Two-thirds of solo and senior pastors have a pension plan or receive a contribution to a retirement plan from their church. Most pastors pay Social Security tax.