Church Finance

Salary Survey
Salary Review Guidelines
Canada Revenue Agency


Salary Survey 2005

The Pentecostal Assemblies of Canada conducts a National Salary Survey once every three years. The report is provided to all credential holders on church staffs. The report does not legislate salary schedules. It is intended to provide typical comparisons to salary review committees as part of their regular salary reviews.

The current 2005 National Salary Survey Report was released in November 2005.  The next Salary Survey scheduled to be conducted in 2008 has been slightly delayed.  This section will be updated as soon as time line decisions have been made.

The report is available through your local pastor or it is available to authorized Board Members by contacting (905) 542-7400 or salarysurvey@paoc.org

Salary Review Guidelines

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The Salary review is a significant component in the provision of consistent Christian leadership to serve in the local assembly and the community. The following are some suggested guidelines for the church board of the salary review committee.

1. A salary review should be conducted annually.

2. A salary review is conducted ethically. Conflict of interest guidelines properly ensure that the pastor and any other potential beneficiaries, while available for reference, must absent themselves from the discussion and decisions of the salary review committee.

3. The salary review is confidential. Those who are responsible for it will treat personal financial data confidentially, respecting the right of salaried individuals to personal privacy. Disclosure of such salary information should be only by consent of the individual.

4. The salary review is contextual. Salary recommendations will be applicable to the local ministry situations such as:

a. Local cost of living conditions. These will include typical housing costs in the community, and any other unique factors including transportation costs, comparative cost of living circumstances, isolation costs, etc.

b. The average salary in the local congregation. Usually the pastor's salary will at least be equal to the average annual earnings of members of the congregation.

c. The size of the congregation. This refers to both the number of people served, and the congregational budget. While the budget is sometimes a genuine limiting factor, the ethical relationship which exists between a congregation and its pastor(s) ensures that congregations which are simply unable to meet the desired benchmarks will communicate with both the pastor and the district leadership so that steps can be taken to facilitate appropriate compensation.

5. The salary review is relevant to the individuals receiving the remuneration, and recognizes:

a. The ministry training of the minister, including years at Bible college, or other related professional or practical training

b. Experience. Churches not only welcome young ministers, but they also find a way to tangibly recognize the value of experience gained by a pastor who is not a novice.

c. Workload. The salary review considers the exceptional time commitments made by many pastors and their families.

6. The salary review is comprehensive. It takes into consideration more than just the dollars needed to live today. A comprehensive salary review includes:

a. Cash Salary. Basic remuneration based on the training, experience, workload and job requirements of the pastor, as noted above.

b. Housing allowance. An allowance sufficient to appropriately house the pastor in the community, if such housing is not directly provided by a parsonage.

c. Vacation pay and days off. The pastor should be free from congregational activities for at least one full day each week. In addition, provincial employment legislation requires a minimum of two weeks paid vacation annually for salaried employees, to be taken in the year it is earned. Most assemblies provide paid vacation time similar to this typical ministry guideline:

i. Three weeks for the first three years of ministry.

ii. Four weeks for years four to 20.

iii. Five weeks after 20 years.

d. Medical Coverage. All of the districts of The Pentecostal Assemblies of Canada carry a group insurance program which provides coverage for dental, medical, and basic life insurance. The premiums are normally provided as a benefit to the pastor in addition to government health insurance premiums. Some districts provide limited subsidies for smaller assemblies which are unable to provide the full coverage.

e. Retirement. Our General Conference in its early stages recognized the spiritual responsibility of every assembly to care for its ministers in their retirement years. Every assembly is encouraged to make sure that it matches at least the minimum pastor and staff contribution to the PROC Pension Plan. (www.paoc.org/pension/news) In addition, an assembly is encouraged to contribute to alternative retirement savings programs on behalf of their pastors. Please note, that the Pension Fund exists to serve not only pastoral staff members, but any staff person who is also a member of the assembly. Church boards are encouraged to consider this pension opportunity for all staff members, including pastoral and other staff members

f. Special Circumstances. Most congregations provide additional time off for crisis days such as death in the family or other events.

g. Ministry-related expenses. A salary review committee will also provide clear guidelines for travel expenses, annual district conference or camp involvements, other seminars or continuing education, and sabbaticals.

7. The salary review will comply with Canadian employment regulations, including the requirements of an employer to deduct and report income tax, Canada Pension contributions, Employment Insurance payments and will recognize Canada Revenue Agency clergy housing provisions.

These details may seem overwhelming. However, healthy congregations genuinely respect those who work hard among them. Also, those who are true shepherds of the flock seek to offer these services only to the Lord, rather than for personal gain.

Canada Revenue Agency Official Website

Commonly Asked Questions:

Clergy Housing Allowance

Designated Giving

Income Tax Receipting

Registered Charity Policy

Please visit the below links and obtain the publications as noted, to ensure you are taking full advantage of all GST, HST, QST and ORST credits available for charitable organizations.  GST would apply to expenses incurred at all locations in Canada, HST would apply to locations in NB, NFLD and NS and ORST would apply to locations in Ontario.

How QST, GST and HST Apply to Charities

GST/HST Information for Charities

ORST Publication "STG 806"

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