Clergy Compensation Package Checklist

Base salary

• Is the base salary equal to or above the minimum salary guidelines for the classis?
• Considering my debts, out-of-pocket medical expenses, savings goals, and projected daily expenses, will this salary cause my income to be greater than my expenses?
• Is this level of compensation in line with my experience and credentials?

Housing allowance 

For ministers who purchase or rent a home:

• Is the housing allowance sufficient to cover a mortgage or rent payment in the neighborhood in which the church is located, or the neighborhood in which members of the church live?
• Do I currently have enough saved for a down payment, or will I need to rent? How will that impact my ability to minister in this context?
• If I plan to purchase a home, will the church provide a down payment loan to help me buy the house? Are the terms of the loan acceptable? 

For ministers who live in church-provided housing:

• Is the housing allowance sufficient to cover my additional housing-related expenses (maintenance, renovations, furniture, insurance, etc.)?

Parsonage 

For ministers who live in church-provided housing:

• Is the condition and location of the parsonage adequate for the needs of me and my family?
• What improvements or updates need to be made before I move in?
• Is there a budget or parsonage maintenance? Can I utilize it on my own, or will expenditures need to go through committee?
• Knowing that living in a parsonage has long-term financial disadvantages, how will I build equity for housing in retirement? Is the church willing to offer an additional equity-building benefit to compensate for this loss?

SECA tax contribution

• Is the church willing to pay half of my self-employment taxes (7.65 percent of my base salary plus housing)? 
• Is the number calculated correctly? 
  • Ministers who own their home: Base salary plus housing allowance
  • Ministers who live in a parsonage: Base salary, plus fair rental value of parsonage
• Knowing that this contribution is taxable, is the church willing to pay a higher amount than 7.65 percent to adjust for the tax burden?

Health insurance

• Will my insurance be through the Reformed Benefits Association (RBA), my spouse’s employer (if married), or another insurance source?
• If the plan is not through RBA, does the insurance meet the minimum health insurance standards?
• Will the church be offering a premium plan or a high deductible plan? Will this plan’s care, coverage, and service meet my needs (and those of my family, if applicable)?

• If the plan is an HSA-eligible high deductible plan, is the church willing to fund some or all of the HSA?

Retirement contributions

• If the position is full time, has the church agreed to make a retirement contribution of 11 percent of my annual salary (base plus housing allowance) or the EBPH contribution (Effective Buying Power per Household), whichever is greater?

• If the position is part time, has the church agreed to make a retirement contribution of 11 percent of my annual salary (base plus housing allowance)? (The EBPH does not apply to part-time ministers.) 

Other benefits

• What is the budgeted amount for professional development?
  • Is it at least 1/52 of my salary?
  • Is it sufficient to fund the books, conferences, and continuing education I plan on pursuing?
• Pastors take congregants out to lunch or coffee, host small groups at their home, use their cars for visitation, and their mobile phones for work. Is there a line item for professional expenses? Is there an accountable expense reimbursement plan?
• What is the starting vacation time allotted? Is there a provision to accrue or earn more with continued service?
• Is there a provision for a sabbatical?
• Will the church cover moving expenses? Up to how much?
• Is there a budgeted provision for counseling or spiritual direction?