1. Cost of Living
2. The Pastor’s Years of Experience 

Even if a congregation cannot offer the salary level for its pastor as outlined by the guidelines, the congregation is encouraged to provide yearly increases in accordance with these two points. To reflect the rising cost of living, the guidelines were increased this year by 3.0% based upon the rate of inflation in the Consumer Price Index (as of August 2025).

In addition to the annual changes, congregations can make adjustments in conjunction with specific ministries unique to their congregations. For example, does the pastor supervise a large staff? Does he serve a congregation with a school? The salary should be adjusted to compensate for his service in these areas. Health and retirement benefits are provided by the congregation in addition to the pastor’s salary. The congregation is encouraged to provide financial support for pastors for continuing education, professional memberships, and conferences.

Each congregation is expected to provide a means of housing for their pastor. This can be in the form of a parsonage or monetary compensation to rent or to purchase a home in accord with the fair market value of the community.

In addition, it is almost always advantageous to declare a portion of a pastor's salary as "housing allowance." Current IRS regulations allow pastors to deduct expenditures that are used to provide a home. Deductible expenditures can include rent or a house payment, utilities, furnishings, repairs, and other home-related expenses. The housing allowance designation is a way of categorizing a portion of a pastor's salary specifically for housing needs, and does not affect the level of a pastor's compensation recommended by the salary guidelines. The pastor determines the portion of his salary declared as housing allowance. This amount is approved by the congregation and recorded appropriately.

The salary guidelines reflect the years of pastoral experience. Year one is the figure used for the candidate newly ordained into the pastoral office. It is important that the congregation is well aware of the number of years a pastor is ordained to make an appropriate compensation package.