GUIDELINES FOR NEGOTIATING THE CALL OF A PARISH PASTOR

CALC is an association of independent Lutheran congregations. CALC congregations call their own pastors and establish their programing. CALC congregations determine their pastors’ compensation. CALC is not a traditional synod that establishes synod-wide compensation standards. CALC  can only provide guidelines for the negotiation of  call. These are guidelines are meant to inform our congregations of the elements of a typical call for a fulltime pastor.  

A typical fulltime call for a pastor has several elements:

  1. Base salary

  2. Housing

  3. Car allowance or reimbursement for use of an automobile.

  4. Pension

  5. Employee Benefits (pension and insurance)

  6. Paid vacation - statutory holidays.

  7. Sick leave.

Below please find information and guidelines pertaining to each of these areas.

Pulpit Supply: Information on compensating supply pastors is found in Paragraph 8 below.

1. Establishing base salary/Compensation

Below please find a grid which establishes annual compensation for a pastor over a period of seven calendar years based upon the educational level of the candidate.

Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7

Start Rate 28,475 29,475 30,475 31,475 32,275 33,100 33,900

Year 1 29,300 30,300 31,300 32,300 33,125 33,950 34,775

Year 2 30,200 31,200 32,200 33,200 34,050 34,925 35,775

Year 3 31,075 32,075 33,075 34,075 34,925 35,825 36,700

Year 4 31,950 32,950 33,950 34,950 35,825 36,725 37,650

Year 5 32,900 33,900 34,900 35,900 36,825 37,775 38,675

Year 6 33,925 34,925 35,925 36,925 37,850 38,800 39,750

  • *Level 1: Basic theological training. The candidate, typically a pastor in training, has begun taking courses Pastoral Ministry Certificate (PMC) program

  • *Level 2: Finished half of the required 12 courses of the PMC

  • *Level 3: Finished PMC program or equivalent training.

  • *Level 4: Bachelor of Theology (B.Th.)

  • *Level 5: Master of Divinity (M.Div.)

  • *Level 6: Master of Sacred Theology (S.T.M.) or Doctor of Ministry (D.Min.)

  • *Level 7: Doctor of Theology (Th.D.) or Doctor of Philosophy (Ph.D.)

Calculating Compensation for Service beyond the 6th Year: For rostered ministers with service beyond the 6th year the increment for every year thereafter should be $500/year for each additional year of service under call after the 6th year.

Assumptions underlying compensation:

  • There is one pastor in the congregation.

  • The pastor is called to a fulltime call (40 hours per week).

  • Pastoral calls do not typically start on the first day of a calendar year. The start rate is used for the calendar year the call begins (typically less than 12 months). The start rate is prorated over the months in said calendar year. Year 1 is the first full calendar year of the call.

  • The average attendance on a Sunday rounded to the nearest 10th is 100.

  • In addition to the basic salary the congregation provides a housing allowance or a parsonage and a vehicle allowance, allowance for pension plan and health benefits for the pastors family.

  • When attendance is over 130 persons the congregation should consider a second Pastor and when attendance is under 50 persons, the congregation should consider if they can afford a fulltime Pastor.

Adjustments to the base salary in each grid.

• For those congregations where the attendance is greater than 100, the amount of $500 per 10 people should be added to the base salary.

• For those congregations where the attendance is less than 100, the amount of $500 per 10 people should be deducted from the base salary.

2. clergy housing - Parsonage or housing allowance.

Adequate housing is provided as part of the compensation package either in the form of congregation-owned housing (parsonage) or a housing allowance.

a. A cash housing allowance can be paid which is equivalent to the fair market rental cost of renting accommodations similar to a parsonage (typically a two- or 3-bedroom home), including utilities, in congregation’s community. “Utilities” are considered to include heat, electricity, water and sewage, and basic phone and internet service. The base rental cost can best be determined through consultation with a local real estate agent. It is recommended that congregations consider changes in fair market rental values when reviewing their pastor’s compensation package during the term of their call.

b. When the congregation provides a housing allowance, the actual amount the rostered minister may claim as a Clergy Residence Deduction is determined by Canada Revenue Agency (CRA). The employee must request an exemption so that the employer does not have to deduct income tax deductions on the amount eligible for the Clergy Residence Deduction. The rostered minister should submit a “Request to Reduce Tax Deductions at Source” Form 1213, to determine the exempt amount for the upcoming tax year. This letter should be sent no later than in September of the year prior to tax year. CRA will confirm with the employing congregation via a Reduction of Income Tax Deduction at Source letter.

c. As an alternative to a cash housing allowance, the congregation  can offer a parsonage or rental accommodation maintained in good repair. plus utilities; and  $175 per month as a housing equity allowance. The housing equity allowance is subject to CPP, EI and income tax deductions.

d. Deacons may qualify for a non-taxable housing allowance in situations where they fulfill the same function test required of an ordained minister. Where a deacon does not qualify for a non-taxable housing allowance, the appropriate figure above should be increased by 30% to compensate for this fact.

3. Car Allowance/Kilometrage.

Congregations can compensate their pastor for use of their vehicle aby either offering a monthly allowance or reimbursement at the rate calculated by the Canadian Revenue Agency (CRA). Consult the CRA website for applicable per kilometer rate. Canada Revenue Agency (CRA) continues to set maximum allowable mileage reimbursement rates. Paying higher than these rates may be considered unreasonable and subject to tax.

4. Pension:

CALC does not have a pension fund for pastors, diaconal ministers or other church workers. Congregations are free to offer a pension to pastors or otherwise contribute to a pastor’s retirement. The congregation may offer to:

  1. Make a contribution (based either on a percentage of the Pastor’s income or some other amount agreed to by the pastor) to a Registered Retirement Savings Plan (RRSP) established for the pastor by the congregation or to a pastor’s existing RRSP.

  2. Enroll the pastor in a Registered Pension Plan (RPP) which is generally known as a money purchase pension plan ("defined contribution"), which has been designed to accumulate employer (5% of compensation) and employee contributions (5% of compensation). Accounts in the RPP are generally credited with the full rate of return on the fund, less any related investment management and administration charges.

5. Employee Benefits.

CALC does not have an employee benefits program for pastors, diaconal ministers or other church workers. Congregations are free to offer an employee benefits package through a private group benefits provider. The employee benefits packages typically include: Employee Life Insurance; Accidental Death & Dismemberment (AD&D); Dependent Life Insurance; Short Term & Long Term Disability; Extended Healthcare; and Employee Assistance Program (EAP) and a pension.

Pension and Employee Benefits through the Canadian Center for Christian Charities (CCCC). The CCCC offers and employee benefits packages which includes a Registered Pension Plan administered through the CCCC. The CCC offers a full range of other employee benefits. Their Basic Plan includes: Employee Life Insurance; Accidental Death & Dismemberment (AD&D); Dependent Life Insurance; Long Term Disability; Early Assistance and Reintegration Service (EARS); Extended Healthcare; and Employee Assistance Program (EAP). Additional coverage options include: Short-Term Disability; Voluntary Life Insurance; Voluntary Accidental Death & Dismemberment; and Dental Care.

To participate in the benefits offered by CCCC your congregation must join the CCCC as an Affiliate Member. The annual membership fee for a congregation with annual income under $300,000.00 is about $300.00. Please consult the CCCC website for the most recent membership fee.

Contact information for the CCCC: PO Box 335, STN Waterloo, Waterloo ON N2J 4A4. Telephone: 519-669-5137 Website: https://www.cccc.org/ Email: Contact page on website.

CALC does not have an employee benefits program for pastors, diaconal ministers or other church workers. Congregations are free to offer an employee benefits package through a private group benefits provider. The employee benefits packages typically include: Employee Life Insurance; Accidental Death & Dismemberment (AD&D); Dependent Life Insurance; Short Term & Long Term Disability; Extended Healthcare; and Employee Assistance Program (EAP).

Pension and Employee Benefits through the Canadian Center for Christian Charities (CCCC). The CCCC offers and employee benefits packages which include a pension through a Registered Pension Plan and offers a full range of other employee benefits. Their Basic Plan includes: Employee Life Insurance; Accidental Death & Dismemberment (AD&D); Dependent Life Insurance; Long Term Disability; Early Assistance and Reintegration Service (EARS); Extended Healthcare; and Employee Assistance Program (EAP). Additional coverage options include: Short-Term Disability; Voluntary Life Insurance; Voluntary Accidental Death & Dismemberment; and Dental Care.

To participate in the benefits offered by CCCC your congregation must join the CCCC as an Affiliate Member. The annual membership fee for a congregation with annual income under $300,000.00 is about $300.00. Please consult the CCCC website.

Contact information for the CCCC: PO Box 335, STN Waterloo, Waterloo ON N2J 4A4. Telephone: 519-669-5137 Website: https://www.cccc.org/ Email: Contact page on website.

6. Paid Vacation.

  • Pastor with 1 to 3 years of service as a pastor: Two weeks per calendar year.

  • Pastor with 4 to 7 years of service as a pastor: Three weeks per calendar year.

  • Pastor with 8 to 14 years of service as a pastor: Four weeks per calendar year.

  • Pastor with 15 to 20 years of service as a pastor: Five weeks per calendar year

  • Pastor with 21 and more years of service as a pastor: Six weeks per calendar year.

Vacation time is based on the calendar year (i.e. January to December). Vacation pay should generally not be accumulated or paid out unless it is approved in writing by the council prior to the year end of the year that the vacation was not taken. Unused vacation credits accumulated within the final year of employment should be paid out on termination of employment. Vacation entitlement as per the table includes Sundays. Vacation time for service for a partial calendar year is prorated on this basis: The annual days of vacation for a calendar year are multiplied by a fraction: the numerator of which is the days of the partial calendar year served by the pastor and the denominator is 365 days or one year.

Day(s) off: A pastor typically gets at least one day off each week. An additional day off each week is encouraged.

Statutory Holidays. Pastors are entitled to have statutory holidays as days off. As salaried employees they are not compensated. If a pastor works on a stautory holiday they are typically given a day off on another day.

Federal Statutory Holidays: The Federal Government lists the following as Statutory Holidays: New Year’s Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; and Boxing Day. Provincial Statutory Holidays are provided below.

Provincial Statutory Holidays:

  • Alberta: New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Labour Day; Thanksgiving Day; Remembrance Day; and Christmas Day.

  • British Columbia: New Year’s Day; Family Day; Good Friday; Victoria Day; Canada Day; BC Day; Labour Day; Thanksgiving Day; Remembrance Day; and Christmas Day.

  • Manitoba: New Year’s Day; Family Day; Good Friday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; and Christmas Day.

  • Ontario: New Year’s Day; Family Day; Good Friday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; and Boxing Day.

  • Saskatchewan: New Year’s Day; Family Day; Good Friday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; and Christmas Day.

7. Sick Leave.

Paid sick days are provided when an employee is ill or injured, needs to attend to a close personal relation/family member or for time off for necessary or routine health care.

Under federal guidelines a full-time employee with a work week of 37.5 hours, earns sick leave at the rate of 9.375 hours each month for which the employee earns 75 hours pay. Sick leave is prorated if you are a part-time employee.

Under federal guidelines full-time employees are entitled to 14 sick days each year (pro-rated for employees joining part way through the year). Part-time employees earn sick days on a pro-rated basis related to their regular hours of work.

Sick days are paid to a maximum of two weeks (10 working days, which include working Sundays) per event at which time a claim must be made to the short term disability plan.

If the employee is not a member of the short term disability plan, sick days continue to be paid to the maximum accrued, subject to medical verification as determined by the employer/congregation.

Bereavement. In each calendar year a pastor is entitled to paid leave for bereavement. Bereavement and compassionate care leave is generally provided with pay for: (1) death or critical illness of a pastor’s spouse or child (typically two weeks per calendar year); (2) death or critical illness of a pastor’s (or pastor’s spouse’s) parent, grandparent, sibling, or grandchild (typically one week per year); (3) death of another relative (typically 3 days per calendar year). Council may allow additional days with pay.

8. pulpit supply

The following information is provided as a guidelines for supply pastors.

  1. Supply preachers, should receive an honorarium based on the congregation’s custom for compensating supply pastors. If a congregation has no custom for compensating supply preachers, the honorarium could be calculated as follows: (1) one worship service: $150.00 plus mileage; (2) two worship services: $200.00 plus mileage. Mileage is calculated at the rate set by the Canada Revenue Agency. Consult CRA website for applicable mileage.

  2. If a pastor provides supply pastoral visitation/care or meets with a family or individual prior to a baptism, the congregation should consider compensating him/her at the rate of between $25.00-$35.00 per hour. The hourly rate would commence from the time they leave their home.

  3. If the congregation has a set rate and developed a program for pre-marital classes, a supply pastor providing pre-marital classes should follow the program and receive the set rate as compensation. If the congregation has no set rate, the compensation for pre-marital counseling and classes should be determined by the couple and the supply pastor and paid directly by the couple to the supply pastor.

  4. If a supply pastor provides Christian education, congregation should consider compensating him/her at the rate of between $25.00-$35.00 per hour. Compensation for providing Christian Education should include 1.0 hour of preparation time for each hour of teaching.

  5. If the congregation has a set rate for their pastor’s officiation at wedding services and/or funeral services, the supply pastor should receive that rate plus mileage (as set forth above). If the congregation does not have a rate set for their pastor’s officiation at wedding services and/or funeral services, the rate for supply preaching, single service above should be used.