Whose responsibility is it to set the minister's salary? I believe there are three components to answering this important question.
First, each minister needs to be objective about money and ask himself, what are the financial obligations I have to meet the needs of my family? Having a clear budget on income needed to meet expenses, is the first step in determining what amount is needed to live on.
It has been said, "If your expenses, exceed your income, then your outflow, will be your downfall."
Second, the place in which a minister serves must have experienced and generous leadership that understand all the factors that go into setting an appropriate salary.
Things like the existing church budget - what % of the budget is available for salaries? What is the projected income/debt over the next ministry year? What is the pastor's budget, education, training, experience, age etc. These are all important considerations and by no means the only criteria. Each case will have its own merits.
Third, the minister and church leadership must meet to confirm and review the budgets of both the church and the minister to determine what the salary scale can be. It is here that prayer and faith will go hand in hand to stretch both parties and see God reward good stewardship.
When Joyce and I started out in ministry, the amount I was being paid by the government was cut in half by the ministerial organization I joined. Then Joyce left her government job, so we were now in a position to exercise faith for finances. We have never gone without, nor have we ever made money the reason why we minister. We have simply stated our needs, our budget, and God has taken care of the rest through godly men on our church board.
Most men are uncomfortable with salary issues because most have never made a real budget and lived within it. This creates stress on them when it comes time to talk about ministerial remuneration. Often they want to appear spiritual and play down the talk of money. Jesus had no trouble talking about money and we shouldn't either.
Salary discussions are an important place to learn to live by and exercise faith. It is here we demonstrate good stewardship as churches and model generosity towards those who give their lives in serving.
Often a spiritual father will be brought into the discussions to ensure all parties are being represented in a godly manner. Most church members love it when their pastor is well paid. It reflects favourably on them as a generous, faith-filled people. Nobody wants to see their pastor struggle in caring for his/her family.
As salary is discussed it is only right that benefits be put on the table. Things like health, dental, life-insurance, pension plans etc. What does the government allow for legitimate deductions? What are the allowances for car and housing? Are there monies set aside for hospitality, attending conferences, seminars, purchasing books, taking courses etc? We need not shy away from these and other vital questions about our salary as ministers.
If a minister is unable to steward his/her personal finances, the salary will never be enough. Sadly, that same pattern will be seen in his leadership of the ministry. It will always be in financial crisis.
When we are talking about finances, I believe we are really talking about stewardship. It alone honours God, who honours those who serve Him honestly and faithfully, without resorting to manipulation or ungodly practices.
Money is a measure of a man's stewardship. Use it wisely, because we will give an accounting of all He has entrusted to us. The scripture says, "To whom much was given, of him much will be required." Luke 12:48