The State of the Church Compensation Survey 2024 conducted by ChurchSalary revealed that church staff salaries and benefits rose more than anticipated. While churches initially projected a 4.5% increase in personnel budgets for 2024, the actual increase averaged 4.9%. The most significant rise was seen in benefit costs, especially health insurance, which grew by 5.2% on average, with one-third of churches reporting increases over 6%.
Health Care and Retirement Spending on the Rise
A majority of churches (59%) reported increased health care benefit spending, and 34% noted higher retirement contributions for staff. Despite this, over 50% of churches maintained the same staff size as in 2023, although 16% reported a decrease in staff, mainly due to reduced giving and attendance.
Staffing Projections for 2025
Looking ahead to 2025, 65% of churches plan to maintain their current staffing levels, with 27% expecting to increase their staff size. However, ChurchSalary predicts these figures may be overly optimistic, warning that more churches may need to downsize.
Challenges in Pastoral Succession and Compliance
Matt Steen from Chemistry Staffing highlighted the increasing cost of replacing pastors, driven by an impending wave of retirements. He urged churches to prepare financially for succession, noting the “graying of the pulpit” and the reduced number of candidates entering ministry.
Additionally, the article addressed new federal labor regulations that raised the minimum salary for exempt employees, which will impact a significant portion of church staff.
Source:
State of Church Compensation Survey: Churches are Spending More on Salaries, Benefits
Image: Photo by Doston Nabotov on Unsplash
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