COMPENSATION
GUIDELINES
A Guide to Compensating Called Workers
Effective July 1, 2024
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Table of Contents
Preface _____________________________________________________________________________ 3
A Bible Study on Compensating Called Workers _____________________________________________ 4
Compensation Plan Components ________________________________________________________ 10
Base Salary ______________________________________________________________________________ 10
Salary Ranges ____________________________________________________________________________ 10
Years of Experience ________________________________________________________________________ 10
Cost of Living Adjustment (COLA) ____________________________________________________________ 10
General Information ______________________________________________________________________________10
The COLA Calculation _____________________________________________________________________________11
Selecting a Cost of Living Data Source ________________________________________________________________11
Removing the Housing Component from a Composite Value ______________________________________________12
Determining the Salary Multiplier from Relative Cost of Living Figures ______________________________________13
Education ________________________________________________________________________________ 13
Special Consideration of Early Childhood Ministry Teachers Who Do Not Hold a Bachelor’s Degree _______________14
Levels of Responsibility_____________________________________________________________________ 14
General Information ______________________________________________________________________________14
General Responsibility Factors ______________________________________________________________________14
Responsibility Examples ___________________________________________________________________________15
Calculating the Responsibility Amount ________________________________________________________________15
Social Security Reimbursement (SECA Tax) _____________________________________________________ 15
Housing Allowance ________________________________________________________________________ 15
General Information ______________________________________________________________________________15
Calculating the Housing Allowance ___________________________________________________________________16
Phase-in Plan ____________________________________________________________________________________16
Housing Equity ___________________________________________________________________________ 16
General Information ______________________________________________________________________________16
Calculating the Housing Equity Allowance _____________________________________________________________17
Compensation Related Items ___________________________________________________________ 18
Benefit Plans _____________________________________________________________________________ 18
Pension _________________________________________________________________ Error! Bookmark not defined.
Other Benefits ___________________________________________________________________________________18
Flexible Spending Plans (Internal Revenue Code Section 125) _____________________________________________18
Business Expenses _________________________________________________________________________ 20
Tax Planning _____________________________________________________________________________ 20
Compensation Plan __________________________________________________________________ 21
Base Salary Matrix ________________________________________________________________________ 21
WELS Synodical Salary Range Assignments _____________________________________________________ 21
Notes ___________________________________________________________________________________ 22
WELS Compensation Plan Worksheet _________________________________________________________ 22
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Preface
At its inception in August 1997, the Synodical Council (of the Wisconsin Evangelical Lutheran Synod)
set the focus for a new called worker compensation plan. It did so by establishing a Human Resources
Committee (HRC) made up of SC members that was charged with the responsibility of developing such
a plan.
For about one year, the HRC struggled with the task. The conclusion was reached that an entirely new
plan was needed to address the major concerns that were made apparent through extensive survey
and discussions held with synodical areas of ministry, calling bodies, knowledgeable laity and called
workers from throughout the synod. The results were contained in the Compensation Guidelines that
have been in effect since December 2002.
Subsequent to the adoption and implementation of the Compensation Guidelines, the Synodical
Council, through its subcommittee, the Compensation Review Committee, has monitored and updated
the Compensation Guidelines to reflect changing compensation and benefits issues. However, no
substantial changes were made to the guidelines since their adoption in 2002.
In 2013, the synod in convention resolved to establish a new ad hoc committee to look at all areas of
synod structure and programs and to bring its suggestions and recommendations to the 2015 synod
convention. The newly established Ad Hoc Commission 2 identified the Compensation Guidelines as a
potential contributing factor in several issues that our called workers and congregations presently face.
Specifically, increases in salary are largely tenure based and do not reflect sufficiently duties and
responsibilities, lack of calls to more senior tenured workers, difficulties filling principal vacancies, and
the absence of early childhood education directors in the guidelines. The Synodical Council’s
Compensation Review Committee (CRC) assumed responsibility for identifying possible changes to the
guidelines and to report those changes to the district conventions in 2016 and final recommendations to
the 2017 synod convention.
The CRC considered the issues identified by the Ad Hoc Commission 2 and drafted recommendations
for consideration by district conventions as well as the Synodical Council and Conference of
Presidents. In summary, the following substantial changes have been made to the guidelines.
•Two salary columns were added to the left of the columns in the current Salary Matrix for non-
college degreed Early Childhood Ministry workers
•The salary ranges applicable to the various ministry positions were expanded to four columns,
with the fourth column being the column to the right. This increase in range of columns was
not added for the ministerial education school presidents or the synod president.
•Providing specific guidance regarding recognizing ministry responsibilities and additional
education in determining a called worker's salary.
•Setting the range of salary for principals in the same range as that of pastors.
•Clarifying and re-emphasizing that all workers should receive a housing allowance or housing
equity.
In addition, the committee created a Called Worker Compensation Calculator for congregations and
other calling bodies to facilitate the consistent application of the guidelines. The committee plans to
provide ongoing training materials for use by district president and circuit pastors for their work with
calling bodies.
The CRC thanks all those who provided prayers and input on the committee’s recommendations and
tools.
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A Bible Study on Compensating Called Workers
“Double Honor” – An Examination of the Scriptural Principles
for Compensating Called Workers
The Issue – The Lord of the Church has graciously instituted on this earth the ministry of
the Gospel. By means of this ministry, the Lord wills that all nations hear the Good News of
the saving work of Jesus Christ, believe it, and finally be saved. This ministry of the Word is
carried out by God’s people. All have a share in this work. But some will be called by God
through His Church to do this work full-time as representatives of Christ and the body of
believers who has called them to use Christ’s Keys publicly. The question then arises: What
compensation should full-time, called workers receive? For guidance in answering this
question, we will look to God’s timeless Word.
LUKE 10:7
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Stay in that house, eating and drinking whatever they give you, for the worker deserves his
wages. Do not move around from house to house.
The context – Jesus is preparing to send ahead of Him 36 two-man teams (or 35 teams) to
the towns and places Jesus intended to visit. They can expect opposition (Luke 10:3). They
are not to go home and pack a big suitcase to take along (Luke 10:4). They are not to
become distracted on the way (Luke 10:4). If they find a welcome in any home, they are to
remain in that home, working from there in that place (Luke 10:5). In this home they are to
accept the food and drink provided to them (they have not brought along purse or bag,
i.e. money or provisions, Luke 10:4). Jesus states the reason they are to accept this
support: [T]he worker deserves his wages. Here Jesus clearly states the principle of
material support for those who preach/teach the Word.
Why the prohibition from moving around from house to house?
Answer: These workers in the Lord’s Kingdom were not to “hunt around” for the
most comfortable accommodations, nor seek the most lucrative support they could
find. They were to be satisfied with their basic needs being supplied.
1 CORINTHIANS 9:4-14
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Don’t we have the right to food and drink?
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Don’t we have the right to take a believing wife
along with us, as do the other apostles and the Lord’s brothers and Cephas?
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Or is it only I
and Barnabas who must work for a living?
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Who serves as a soldier at his own expense?
Who plants a vineyard and does not eat of its grapes? Who tends a flock and does not drink
of the milk?
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Do I say this merely from a human point of view? Doesn’t the Law say the
same thing?
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For it is written in the Law of Moses: “Do not muzzle an ox while it is treading
out the grain.” Is it about oxen that God is concerned?
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Surely he says this for us, doesn’t
he? Yes, this was written for us, because when the plowman plows and the thresher
threshes, they ought to do so in the hope of sharing in the harvest.
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If we have sown
spiritual seed among you, is it too much if we reap a material harvest from you?
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If others
have this right of support from you, shouldn’t we have it all the more? But we did not use
this right. On the contrary, we put up with anything rather than hinder the gospel of Christ.
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Don’t you know that those who work in the temple get their food from the temple, and
those who serve at the altar share in what is offered on the altar?
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In the same way, the
Lord has commanded that those who preach the gospel should receive their living from the
gospel.
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The context – Paul has just written to the Corinthians about being willing to yield their right to
do something out of love and for the good of another (Chapter 8). In Chapter 9, Paul puts
forward an example of this in what he had done when he had first come to Corinth. He had
not made use of his “right” (v. 4, 12) of receiving material support from the Corinthians.
Notice Paul calls receiving support a “right” of those laboring in the Word. What is a “right”?
Answer: A “right” is that which is due to a person by virtue of a given status. A
person has a just, moral claim to that which is their right. We might even say rights
are “existential.” To exist as a certain thing means certain rights accrue to that
individual. Paul’s point is that being (existing as) an apostle meant having the right of
material support.
Nature and human experience teach the principle that laborers enjoy the fruit of their labors.
What examples does Paul cite in this section?
Answer: Soldiers receive compensation for their duty (One thinks how soldiers were
quartered in the homes of those they served to defend). Vintners enjoy some of the
grapes they harvest. Shepherds enjoy some of the milk from the sheep/goats they
tend. Farmers and farmhands enjoy the produce they have worked to plant and
harvest.
Not only do nature and experience teach this principle, God does, too, in the Old Testament.
In what unlikely verse from the Old Testament does Paul see God teaching the principle of
the right of a Gospel preacher/teacher to be compensated for their labors?
Answer: “Do not muzzle an ox while it is treading out the grain.”
(Deuteronomy 25:4)
What other example from the Old Testament does Paul also cite?
Answer: Paul cites the example of the priests at the Temple who received their food
from the gifts and sacrifices the people brought.
The principle (Paul even calls it the command of the Lord Jesus - v. 14)
Answer: THOSE WHO PREACH THE GOSPEL SHOULD RECEIVE THEIR LIVING
FROM THE GOSPEL
For further discussion: In verse 5 Paul made the point that the Gospel preacher has the right
to take his wife with him. How does this affect our understanding of the “right of support” (v.
12) for those who preach the Gospel?
Answer: Understanding that the full-time preacher/teacher has the right to be a
“family man/woman,” calling bodies would want their support to be sufficient so the
worker can provide for family.
Paul freely yielded his right of support in Corinth. Is it right to expect a called worker to labor in “tent-
making” to make a living wage?
Answer: At certain times and in certain places, “tent-making” ministries may exist. (“Tent-
making” ministries are understood as those where a person is called and compensated for
part-time Gospel ministry, with the understanding they will seek gainful employment
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elsewhere to earn a “living wage.”) It would be important in these circumstances for both the
calling body and the individual called to know the parameters and expectations of the Call.
“Tent-making” calls will exist where and when circumstances and careful stewardship
determine this is the wisest way to carry on Gospel ministry. Congregations that would
“expect” their called worker to get a second job because they simply don’t want to pay “so
much,” or who want to do ministry “on the cheap,” should reexamine their motives and the
principles this Bible study seeks to review.
GALATIANS 6:6
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Anyone who receives instruction in the word must share all good things with his instructor.
Who has the primary responsibility to compensate the instructor of the Word?
Answer: Those who directly receive the benefit from that instructor. This is not to
suggest that subsidy in the cause of opening missions is wrong, but as a general
practice it is only fitting that the recipients of the Gospel ministry compensate the
Gospel minister from whom they receive the Gospel.
1 TIMOTHY 5:17-18
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The elders who direct the affairs of the church well are worthy of double honor, especially
those whose work is preaching and teaching.
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For the Scripture says, “Do not muzzle the
ox while it is treading out the grain,” and “The worker deserves his wages.”
How do we know that the “honor” of which Paul speaks in these verses is not merely an attitude in
the abstract but compensation in the concrete?
Answer: To buttress his statement that elders who serve well are worthy of double
honor, Paul quotes (again) the passage from Deuteronomy where oxen are allowed
to eat as a result of their treading, and he quotes Jesus’ comments about workers
and their deserved wages.
What significance is it that compensation is called not only a wage (v. 18), but also an “honor” (v.
17)?
Answer: In the world, compensation may be simply a calculation of the “market-rate”
or even a tool to motivate and retain workers. Not so in the Church. Compensation
for those who are called to serve in the Gospel ministry is also a way God’s people
show them honor.
How should the word “double” be understood in this verse? (the literal formula or calculus by which
to set the salary of called workers, a general guideline, other?)
Answer: Interpretations vary. Some believe elders deserve the attitude of honor (this
would be one honor) and also the honor of wages (the second, and thus, “double”
honor). There is a Scriptural use of the idea of doubling that simply connotes “much
more.” (e.g. the double blessing for Jerusalem in the place of her sin, Is. 40:1-2; the
double destruction spoken of through Jeremiah, Jer. 17:18; the double portion of
judgment for the harlot, Rev. 18) Perhaps the best way to bring out the idea in this
verse is: Whatever you have come to think of as normal honor, the well-serving elder
is worthy of much more! And this abundance of honor will be evidenced in the elder’s
compensation.
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Notice again that the basis for Paul’s point regarding compensation is Old Testament Scripture (Do
not muzzle the ox…) and the command of the Lord Jesus (The worker deserves his wages).
A Word about the Attitude of Workers
Every called worker, like every Christian, is a “saint/sinner.” Therefore, there will always be
the tension and the temptation for called workers to labor like hired hands (John 10:11-13)
and to view ministry as a means to financial gain (1 Timothy 6:5). Where such an unholy
motive is at work, the only recourse is repentance. For this sin, too, the penitent will flee to
Jesus for mercy. For this sin, too, Jesus died and rose.
In newness of life, created and strengthened by Word and Sacraments, the worker will
remember that he is not to be a lover of money (1 Timothy 3:3). In resolve given by the Holy
Spirit, he will flee from all this, and pursue righteousness, godliness, faith, love, endurance
and gentleness. (1 Timothy 6:11)
For further discussion:
Nowhere does Scripture mandate an exact amount or formula for determining
compensation for called workers. That in itself is instructive. How so?
Answer: The setting of compensation is an area in which Christians move about in
the freedom of the Gospel, guided by the counsel of God’s Word. The determination
of compensation is not a legalistic chore for a calling body nor a mindless picking of
a number, but a thoughtful, prayerful, Gospel- motivated exercise of love.
The compensation provided a full-time called worker has been called “freedom.” In what sense is
compensation “freedom?”
Answer: The full-time worker should be free to concentrate on the work for which
they have been called, and not have to unduly concern themselves with matters of
food and clothes. Of course, this is first and foremost a matter of trusting the Father in
heaven who knows our needs and well provides us. However, a congregation’s
compensation should not lead a worker into temptation, either.
Based on what Scripture says, what questions might a calling body ask itself when
determining the compensation of its called worker(s)?
Answer: Answers will, of course, vary. Some questions that flow out of this study might be:
â–Ş Does this compensation demonstrate double honor?
â–Ş Does this compensation adequately provide for this man/woman/family?
Summary – In the Church, the Gospel is everything. It is God’s pardon of the sinner for
Jesus’ sake. It is the creative word of God that calls the Church into existence and will
preserve her in the world until Christ comes. While Christ will always and rightly be our
dearest Treasure, Christ’s people will also honor those who bring them such Good News.
Part of that honor will be demonstrated in the compensation we provide those bringers of
the Gospel. How beautiful on the mountains are the feet of those of those who bring good
news. (Isaiah 52:7)
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Compensation Planning Philosophy
Guideline Objectives
The Compensation Review Committee aimed at producing compensation guidelines that will:
Goal #1
Reflect the Scriptural principle that those who serve in the public ministry are worthy of double honor
(1 Timothy 5:17).
Goal #2
Recommend appropriate compensation so that servants of the gospel may devote themselves to
the work of the ministry, without needing to find outside employment to support themselves and
their families (1 Corinthians 9:1-14).
Goal #3
Encourage equity in compensation, so that two people doing similar work receive similar
compensation.
Goal #4.
Recognize the value of experience but place a greater emphasis on responsibilities assigned to
the individual called worker.
Goal #5
Make it easier for calling bodies to put together a compensation package for their called
workers.
Goal #6
Promote a relatively cost-neutral impact to the work we do together as a synod as the
revised guidelines are implemented.
Expected Outcomes
It is anticipated that the guidelines will:
1. Reinforce the scriptural truth that calling bodies have a God-given responsibility to provide
adequate compensation for the servants of Christ who labor in their name.
2. Provide calling bodies the opportunity to give prayerful and careful consideration each year
to the compensation they will provide for those who serve in public ministry.
3. Encourage calling bodies and called workers to plan for professional development as an
ongoing responsibility.
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4. Offer flexibility to calling bodies in determining compensation for their called workers.
5. Promote a more consistent approach to compensation within and between calling bodies.
6. Simplify the process of determining the components of appropriate compensation.
Desired Benefits
It is also anticipated that the guidelines will:
1. Provide for a deep, thoughtful, Scripture-guided exercise for the calling body and its called workers.
2. Help calling bodies recognize with thanksgiving the blessings the Lord has given them
in the called workers he has provided.
3. Lead called workers to appreciate the privileged responsibilities entrusted to them.
4. Help recognize the wide diversity of responsibilities within WELS.
5. Provide for an annual review of compensation levels for called workers.
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Compensation Plan Components
The information contained within this section is intended to provide calling bodies with a framework for
determining the overall compensation package for called workers. Additional guidance is provided
through the use of the Called Worker Compensation Calculator which incorporates these
components in an easy to use web-based tool which can be found at wels.net/cwcompcalc.
Base Salary
Base salary is the starting point for developing a total compensation package for all called workers. The
entry-level figure of the synod Salary Matrix (see below) was initially derived from national averages of
survey data taken from the U.S Bureau of Labor Statistics (BLS). Since 2002, two surveys, the
Consumer Expenditure Survey and national per capita income, are reviewed annually in order to adjust
the entry-level salary as appropriate. However, significant financial challenges since the mid-2000’s
have limited changes to the Salary Matrix to modest increases, including two years where the matrix
was frozen (2009-10 and 2010-11).
Salary Ranges
The Salary Matrices outlined below provide calling bodies with a flexibility to establish compensation
levels between and within different synodical salary range assignments based upon a number of
factors. The number of columns assigned for each ministry position allow a calling body to recognize
differing responsibilities between positions. It is important to understand that a range assignment within
the matrix is a continuum with multiple salary points. A specific salary is determined for an individual
holding the position based upon call responsibilities, education level attained, and years of experience.
At least annually, calling bodies should conduct a review to evaluate an individual worker's
responsibilities and educational advancement and determine where in the suggested salary range the
worker ought to be placed. Changing call responsibilities and educational levels may lead to a salary
adjustment.
Years of Experience
The Salary Matrix recognizes the value of ministry experience. Two years of frozen salaries required the
addition of two years to the Salary Matrix, moving it from 30 to 32 years.
Cost of Living Adjustment (COLA)
General Information
One of the principles of these Guidelines is to provide that all called workers are compensated equally
for the work of the call they accept. Because the cost of living varies from region to region in the United
States, it may be necessary to adjust the base salary depending upon the geographic location of the
call. The Cost of Living Adjustment (COLA) is the component of the compensation package that allows
calling bodies to adjust wages to reflect this fact. The COLA multiplier can be positive (cost of living
multiplier greater than 100%) or negative (cost of living multiplier less than 100%). If negative, the
calling body is encouraged to simply include a 0 multiplier to avoid reducing the salary below the Salary
Matrix figure.
It is important to remember that this adjustment is to reflect living costs apart from housing. This means
the calculation will be the same regardless of whether the called worker owns, rents, or has housing
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provided. This also means that any cost of living index (COLI) must exclude housing as a component
of the index. See the “Housing” component of the package for further details on how housing affects
compensation.
The COLA Calculation
The actual application of this adjustment is very simple. It only requires multiplying the actual salary
determined for the worker from the Salary Matrix (not the entry level salary) by the appropriate modifier
(salary X modifier = COLA). This figure should be reviewed on an annual basis. The modifier must be
set by the calling body. Guidelines for determining this value are detailed in the sections below.
Example: With a salary of $45,000 and a modifier of 109.0%, a COLA of $4,050 would result
($45,000 X .09 = $4,050).
Selecting a Cost of Living Data Source
The on-line Called Worker Compensation Calculator (wels.net/cwcompcalc) contains a pull-down
menu with suggested COLA adjustments based on many specific geographic locations that may be
relevant for calling bodies. If the calling body’s location is listed in the pull-down menu, it may use the
applicable COLA adjustment when computing compensation. COLA adjustment may vary widely
depending on the specific location of the calling body, however. If the location of the calling body is not
listed in the pull-down menu, the calling body must calculate the applicable COLA by reviewing the
available COLA information sources and determining for themselves which resource or combination of
resources best serves their specific situation. There are many resources available that provide cost of
living information. However, there is not one single source that will work as needed for all WELS calling
bodies.
There are two primary reasons for not being able to designate a specific resource as the final guide for
selecting the base salary modifier. First, some resources do not cover an adequate number of
locations. Second, some resources do not provide enough information on how their number was
derived. This second point is important because of the need to exclude the housing component (see
General Information above).
Although each of the resources listed below does include housing in their composite number, some of
them provide enough information so that this housing element can be mathematically removed. Since
housing is often the largest contributing factor to these indices, it is imperative to be able to eliminate
that portion in order to have an accurate base salary modifier for our purposes.
The Council for Community and Economic Research (C2ER) is one group that has developed a
suitable Cost of Living Index (COLI). The WELS Human Resources Office has determined that the
methodology they use to calculate COLI is very sound and should be used as the starting point for
determining the appropriate base salary modifier. The primary shortcoming of their COLI is the limited
number of locations covered each quarter. The composite COLI does include housing. However,
C2ER provides enough information to remove housing from COLI. Instructions for making this
calculation can be found in the following section on Removing the Housing Component from the
Composite Value.
The COLI data can be found at coli.org. C2ER data for selected areas may be found on the WELS.net
site on the Human Resources page at welsrc.net/human-resources/. Specific data may be requested
by e-mail to [email protected].
A web site that uses COLI and other information to generate cost of living comparisons is found at
bestplaces.net.
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Two other sites that provide cost of living data are money.cnn.com/calculator/pf/cost-of-living, and
https://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx. However, these
resources do not provide enough information to allow removal of housing from the data.
Removing the Housing Component from a Composite Value
The COLA adjustment is only applied to the non-housing compensation components. If a calling body
uses the Called Worker Compensation Calculator pull-down menu to determine the COLA
adjustment, this is done automatically. If a calling body does not find a COLA number for its area in
the pull-down menu in the CWCC, or believes the number to be inaccurate, it must remove the
housing component when manually determining the COLA adjustment to obtain an appropriate value
for use with this compensation plan. The removal of the housing component from cost of living
eliminates a duplication with the separately provided housing/housing allowance element of this plan.
The composite cost of living figure is usually listed as a percentage relative to the average cost of living.
The average cost of living is written as 100%. A cost of living of 109% would indicate an area where
costs are 9% higher than the average.
Since the composite value is a weighted average of several cost of living components, the information
required to remove the housing component is as follows:
â–Ş The percent weighting of each
component
â–Ş The specific value of each component
Consider the following example (taken from the bestplaces.net website):
Cost of Living Component (Component Weight)
Relative Percentage
Housing (31%)
117%
Food/Groceries (16%)
102%
Transportation (10%)
102%
Utilities (8%)
95%
Health (5%)
120%
Miscellaneous (30%)
102%
Overall (i.e. the composite-weighted value)
107%
Here we have the information we need, the weighting factors (31% of the composite value comes from housing)
and the value for each component (housing = 117% of average).
Note that the weighting factors total 100% (31 + 16 + 10 + 8 + 5 + 30 = 100).
The following steps will remove housing from the composite:
1. Calculate the total weighting of all the components that will remain in composite after removing housing.
That number is 100 – 31 = 69%
or 16 + 10 + 8 + 5 + 30 = 69%
or 0.16 + 0.10 + 0.08 + 0.05 + 0.30 = 0.69 (in decimal for Steps 2 & 3).
2. Multiply each remaining component by its weighting factor and add the results.
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.16 X 102%
=
16.32%
.10 X 102%
=
10.2%
.08 X 95%
=
7.6%
.05 X 120%
=
6.0%
.30 X 102%
=
30.6%
70.72%
3. Divide the cost of living figure without housing from Step 2 (70.72%) by the combined weighting
factor calculated in Step 1 (0.69).
70.72% divided by .69 = 102.49%
This example is the relative cost of living with housing removed (compared to 107% of average if
housing is included).
Determining the Salary Multiplier from Relative Cost of Living Figures
The salary multiplier (see section The COLA Calculation above) is easily determined from the
composite cost of living value with housing removed, as calculated in the section above.
Remember that the cost of living figures shown above are relative to an average value of 100%. To
determine the multiplier, simply subtract the average percentage from the new composite percentage.
102.49% – 100% = 2.49% or 0.0249 for use as the multiplier to determine COLA (see Section
The COLA Calculation). Thus, in this example, the COLA would be
$45,000 X .0249 = $1,120.50 (rounded to $1,121)
Note: If the cost of living were less than average, (i.e. less than 100%) a negative multiplier
(hence a negative COLA) would result, reflecting the lower cost of living for that area. It is
recommended that the calling body simply leave the multiplier at 0 to avoid providing a base
salary lower than the Salary Matrix would provide.
Education
This element is considered as salary range assignments are established. For example, the minimal
educational expectation (just one component of the Level C range) for an elementary classroom
teacher is the Bachelor's Degree. Continuing education toward the Master's Degree would seem to be
a worthwhile goal, and as that goal is worked on, the calling body might consider moving that teacher's
compensation level along the salary ranges listed from C to F. Salary numbers need not be exactly C,
D, E or F, but could rather be placed anywhere between the C to F ranges as continuing education
proceeds. Similar progression could be applied to principals or secondary teachers as they continue
their education toward the Master's Degree, something which would seem especially valuable given
their respective callings and levels of responsibility. If an advanced degree is attained, calling bodies
are strongly encouraged to increase compensation as illustrated in the Called Worker
Compensation Calculator at wels.net/cwcompcalc.
Missionaries, counselors, administrators, and all other called workers could be so encouraged. The
point is this, continuing education should be recognized for all called positions within the suggested
range of salary offered by the Called Worker Compensation Calculator or columns C-F in the Salary
Matrix. As additional educational levels are attained and utilized in an individual's call, consideration
should be given to moving this salary component to higher levels within the respective ranges.
Learning is life-long, and clearly does not stop, even formally, upon graduation.
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Special Consideration of Early Childhood Ministry Teachers Who Do Not Hold a
Bachelor’s Degree
The WELS Compensation Guidelines generally anticipate and require that all called workers hold a
bachelor’s degree (Salary Matrix, Columns C and above) in order to be considered for a call. This is
also true of all Early Childhood Ministry teacher positions. In certain situations, however, calling bodies
may call an Early Childhood Ministry teacher who has not completed any post-high school degree
program or who has completed an associate (2-year) degree program. In these situations, calling
bodies should use Salary Matrix Column A for ECM teachers with no post-high school degree or
Column B for ECM teachers with an associate degree to calculate appropriate compensation amounts.
While all called workers compensated using Salary Matrix Columns C and higher should receive a
housing allowance, health care and other benefits, calling bodies have the discretion to consider
housing allowance, health care and other benefits for called workers compensated under Salary Matrix
Columns A or B on a case-by-case basis.
Levels of Responsibility
General Information
The current compensation package lists twenty-nine different ministry classifications on page 21 of
these guidelines. Each ministry classification has a built-in set of responsibilities. Some classifications
have higher levels of responsibility than others. For example, the classification principal has more
responsibility than that of early childhood ministry teacher. However, within the same ministry
classification there are often extra duties and responsibilities that may be assigned. This component
allows the calling body to recognize these added responsibilities with additional pay. The Called
Worker Compensation Calculator offers common additional responsibilities that might be considered
in determining salary.
The responsibility component recognizes additional duties that are assigned to individuals within the
same job classification. It is not the process of measuring how well these or any job responsibilities are
being carried out. At this point, there is no provision within the compensation package to perform this
type of evaluation. Some additional assignments may be temporary in nature, lasting only for a year or
so. Others may continue from year to year. In either case, the calling body should review each called
worker’s responsibilities on at least an annual basis. Additional compensation should be considered for
those workers who have assumed these additional responsibilities.
General Responsibility Factors
Increased job responsibility can occur in a variety of forms. Any notable change in the complexity of
the job or the time required to complete assigned tasks may warrant consideration for additional
compensation. Some general factors to consider:
1. Additional time requirements
2. Increased knowledge, skill, or expertise for new assignments
3. Additional decision making
4. Additional communication requirements (motivation, facilitation, negotiation)
5. Increased requirement for critical thinking and problem solving
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Responsibility Examples
Following is an example of tasks for a “Teacher” that could be considered as “additional responsibilities” within a
specific job classification. This is by no means an exhaustive list.
â–Ş Activities/Athletic Director
â–Ş Music Coordinator/Director
â–Ş Department Chair
â–Ş Technology Coordinator/Director
â–Ş Vice-Principal/Assistant Principal
â–Ş Director/Coordinator of Curriculum Instruction
â–Ş Congregational Duties
â–Ş District/Synod Duties
Calculating the Responsibility Amount
The recommended compensation for additional responsibilities would be an additional $1,000 to
$1,200 for each additional responsibility. The Called Worker Compensation Calculator provides
illustration of moving the called worker across their designated Salary Matrix columns based on their
additional responsibilities. Calling bodies are strongly encouraged to use the Called Worker
Compensation Calculator to assist with determining additional salary commensurate with additional
called worker responsibilities at wels.net/cwcompcalc.
Social Security Reimbursement (SECA Tax)
Congregations/calling bodies are encouraged to remunerate up to one half of the self-employed social
security tax for Ministers of the Gospel. This cash reimbursement is taxable income under current tax
code. The reimbursement amount is calculated on salary, cost of living, housing value (provided or
allowance) and other taxable income, less deductions for tax sheltered annuities (403b) and Section
125 (health insurance, flex spending). Salary reduction contributions (elective deferrals) to a tax-
sheltered annuity plan (403b) or Section 125 plan (health insurance, flex spending) that are not
included in gross income are not subject to self-employment tax.
Housing Allowance
General Information
Because many called workers have housing provided in the form of a teacherage or parsonage, it is
necessary to make the housing allowance a separate component of the compensation package. If we
remember this fact, we can better understand how this component is to be applied. The breakout is
not required to receive the associated income tax benefits for those who meet the criteria for the IRS
designation of "Ministers of the Gospel”. The tax benefit is achieved by making the appropriate
request that lists actual housing expenses. (See the tax planning section for more details). If there
were no parsonages or teacherages, this component would not be needed. The base salary could be
increased and the cost of living adjustment (COLA) could reflect the regional differences in housing
costs.
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Each called worker is entitled to a housing allowance. This is part of their total compensation and
should not be determined on the basis of need. Two individuals performing the same job should receive
the same pay for that job. No consideration, for example, should be given to the size of an individual’s
family. Nor does it matter if a called worker is head of household. The compensation guidelines attempt
to establish a fair wage for a specific job. That fair wage includes the housing allowance regardless of
what the actual housing needs are for that individual. The Salary Matrix itself does not provide a fair
total wage; its values were specifically set below what would be considered a fair total wage, with the
understanding a housing allowance would be included (or housing provided) to bring the called workers
total wage to a fair and appropriate level. For example: if a congregation has a teacher who happens to
be married to a pastor, both should receive a housing allowance as part of their overall compensation.
Calculating the Housing Allowance
The cost of housing can vary significantly from region to region within the United States. This variance
must be considered when establishing the appropriate amount for this component. Remember that the
cost of living adjustment (COLA) does not include the variance in housing costs.
The calling body should determine the average cost of renting a three-bedroom home in your
geographic area where the called worker lives or works. This amount should be included as part of
compensation for each worker who is not specifically provided housing as part of his or her total wage
amount. The Called Worker Compensation Calculator includes a link to the HUD calculator for
comparison purposes. In addition to checking the HUD figure, calling bodies are encouraged to check
with local real estate offices and obtain current market data to assist in determining a fair Cash Housing
Allowance after comparing available resources. Once the Housing Allowance is established upon
acceptance of new call, subsequent years should merely be increased by the inflation rate adjustment
as included in upper left corner of annual fiscal year Salary Matrix (currently 1.22%). For called workers
renting, the Cash Housing Allowance should be reviewed annually.
Phase-in Plan
The guidelines approved by the synod convention in 2003 called for a housing allowance for all called
workers, regardless of their need or family situation. Some calling bodies may not have understood how
the guidelines applied, particularly to called worker spouses, and haven't provided the appropriate
housing allowance. Because full implementation of this recommendation could place a significant
financial burden on a calling body, the calling body may need to adopt a phase-in plan like the one
suggested below:
Year 1 - Amount equal to the housing equity allowance (currently $620)
Year 2
- 40% of the housing component for that area
Year 3 - 60% of the housing component for that area
Year 4 - 80% of the housing component for that area
Year 5 - 100% of the housing component for that area
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$31,365 X .02 = $627
The base salary is set by the WELS Human Resources Office and could be adjusted annually. Ideally,
the equity amount could be invested in a tax-free account under the name of the called worker. For
more information, see the Tax Planning section of this document.
General Information
Called workers who have housing provided at no cost (parsonage or teacherage) do not have the
benefit of accumulating the same housing equity as do their counterparts who receive a housing
allowance. This can present a serious problem as these individuals approach retirement. This
component of the compensation plan is intended to relieve this problem. Individuals who spend most of
their ministry in provided housing will be able to accumulate the funding necessary to provide their own
housing upon retirement.
Calculating the Housing Equity Allowance
The recommended amount for this allowance is 2% of the base salary. As of July 1, 2024, the base
salary is $31,365. This would make the Equity Allowance $627 (see calculation below):
Housing Equity
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Compensation Related Items
Benefit Plans
WELS Retirement Program
Each called worker who works at least half-time during the year is provided coverage in the WELS
Retirement Program. Calling bodies are required to pay for the mandatory participation in the plan
through payments established by the WELS Retirement Program Commission. The plan provides a
portion of post- retirement income for the worker based on years of service. The WELS Retirement
Program is not designed as an income replacement plan, so other sources of retirement income will
be needed at the end of a career. These sources include personal savings, contributions to 403(b)
plans, like the WELS Shepherd Plan, individual retirement accounts, and Social Security benefits.
Details about the WELS Pension and Shepherd plans are available at welsbpo.net or by calling the
WELS Benefit Plans Office at 414-256-3299.
Other Benefits
All calling bodies should ensure that their called worker and their family have adequate health
insurance and other benefits as part of their compensation package. Regarding health insurance
specifically, calling bodies should provide every full-time called worker and their family with coverage
comparable to WELS VEBA Plan 2 level of benefit offered by WELS Benefit Plans Office or equivalent
paid for by the calling body, or confirm that each called worker has comparable health insurance
coverage through some other means (e.g., through a spouse’s plan, etc.). While not mandatory, calling
bodies are encouraged to participate in the WELS Voluntary Employee Benefit Association (VEBA)
Group Health Care Plan. The VEBA plan does not underwrite coverage based on age, participant’s
health condition or health care utilization.
What is a VEBA? It is a legal entity by which a benefit organization is granted tax-exempt trust status by
the IRS. The beneficiary association can provide for the payment of life, health, accident, or other
benefits to their members or their dependents.
In addition to health care coverage, the VEBA Plan provides the following coverage either as part of the
plan or as a voluntary benefit:
â–Ş Long-term Disability Insurance
â–Ş Accidental Death and Dismemberment Insurance
â–Ş Group Term Life Insurance (voluntary)
â–Ş Dental Insurance (voluntary)
â–Ş Medicare Supplement (voluntary)
Details about the plan are available at welsbpo.net or by calling the WELS Benefit Plans Office at
414-256-3299.
Flexible Spending Plans (Internal Revenue Code Section 125)
Qualified flexible benefit plans allow workers to pay for certain health care expenses with pre-tax dollars.
This means that contributions are made before almost any income and payroll taxes are calculated and
deducted. At the federal level, this translates into no Social Security & Medicare taxes, Federal
Unemployment (a tax not applicable to most WELS entities) or income tax. The Social Security and
Medicare savings apply both to the employee and the employer. In almost all states, these plans also
allow for no state income taxes to be calculated or deducted on the Section 125 amounts.
20
Flexible spending plans come in different forms. Some examples are:
â–Ş Premium Conversion Plan (premium only plan or POP)
â–Ş Flexible Spending Accounts (FSAs)
â–Ş Full Flex Plans (cafeteria plans)
Since these plans may have complex legal and cost implications, calling bodies are strongly
encouraged to seek professional advice when considering their establishment. Exploration is underway
to provide some form of flexible spending plan through WELS VEBA in which sponsoring WELS
organizations may participate.
Business Expenses
Certain business expenses are incurred by workers in carrying out ministry work; calling bodies are
urged to recognize such costs and provide for non-taxable reimbursement of such expenses to the
fullest extent allowed by law. Such expenses may include the following:
â–Ş Car Allowance or Mileage Reimbursement for use of personal vehicle
â–Ş Conference Expenses
â–Ş Book Expenses
â–Ş Office Supplies
â–Ş Computer
â–Ş Mobile devices such as phones and tablets
Tax Planning
All workers are encouraged to minimize tax liability through careful planning and making use of
advantages available to them in the tax laws. The WELS Financial Services area publishes a tax guide
for use by calling bodies and individuals that outlines federal tax laws and applies them to practical
situations. A copy of this tax guide can be found on the WELS.net Human Resources page at
welsrc.net/human-resources/.
Workers and calling bodies are urged to look for professional advice within their local areas when
undertaking tax planning.
1.22% Inflation Rate Adjustment
(mulitply established Cash Housing Allowances by 1.0122 for new FY)
Range Spread 12,546 13,330 15,683 16,467 17,251 18,035 18,819 19,603 20,388 21,172
Service Incr. 418 444 523 549 575 601 627 653 680 706
Range/
Experience
A B C D E F G H I J
0 25,092 26,660 31,365 32,933 34,502 36,070 37,638 39,206 40,775 42,343
1 25,510 27,104 31,888 33,482 35,077 36,671 38,265 39,859 41,455 43,049
2 25,928 27,549 32,411 34,031 35,652 37,272 38,893 40,513 42,134 43,754
3 26,347 27,993 32,933 34,580 36,227 37,874 39,520 41,166 42,814 44,460
4 26,765 28,437 33,456 35,129 36,802 38,475 40,147 41,820 43,493 45,166
5 27,183 28,882 33,979 35,677 37,377 39,076 40,775 42,473 44,173 45,872
6 27,601 29,326 34,502 36,226 37,952 39,677 41,402 43,127 44,853 46,577
7 28,019 29,770 35,024 36,775 38,527 40,278 42,029 43,780 45,532 47,283
8 28,438 30,215 35,547 37,324 39,102 40,879 42,656 44,433 46,212 47,989
9 28,856 30,659 36,070 37,873 39,677 41,481 43,284 45,087 46,891 48,694
10 29,274 31,103 36,593 38,422 40,252 42,082 43,911 45,740 47,571 49,400
11 29,692 31,548 37,115 38,971 40,827 42,683 44,538 46,394 48,250 50,106
12 30,110 31,992 37,638 39,520 41,402 43,284 45,166 47,047 48,930 50,812
13 30,529 32,436 38,161 40,068 41,977 43,885 45,793 47,701 49,610 51,517
14 30,947 32,881 38,684 40,617 42,552 44,486
46,420 48,354 50,289 52,223
15 31,365 33,325 39,206 41,166 43,128 45,088 47,048 49,008 50,969 52,929
16 31,783 33,769 39,729 41,715 43,703 45,689 47,675 49,661 51,648 53,634
17 32,201 34,214 40,252 42,264 44,278 46,290 48,302 50,314 52,328 54,340
18 32,620 34,658 40,775 42,813 44,853 46,891 48,929 50,968 53,008 55,046
19 33,038 35,102 41,297 43,362 45,428 47,492 49,557 51,621 53,687 55,752
20 33,456 35,547 41,820 43,911 46,003 48,093 50,184 52,275 54,367 56,457
21 33,874 35,991 42,343 44,460 46,578 48,694 50,811 52,928 55,046 57,163
22 34,292 36,435
42,866 45,008 47,153 49,296 51,439 53,582 55,726 57,869
23 34,711 36,880 43,388 45,557 47,728 49,897 52,066 54,235 56,405 58,574
24 35,129 37,324 43,911 46,106 48,303 50,498 52,693 54,888 57,085 59,280
25 35,547 37,768 44,434 46,655 48,878 51,099 53,321 55,542 57,765 59,986
26 35,965 38,213 44,957 47,204 49,453 51,700 53,948 56,195 58,444 60,692
27 36,383 38,657 45,479 47,753 50,028 52,301 54,575 56,849 59,124 61,397
28 36,802 39,101 46,002 48,302 50,603 52,903 55,202 57,502 59,803 62,103
29 37,220 39,546 46,525 48,851 51,178 53,504 55,830 58,156
60,483 62,809
30 37,638 39,990 47,048 49,399 51,753 54,105 56,457 58,809 61,163 63,515
31 38,056 40,434 47,570 49,948 52,328 54,706 57,084 59,462 61,842 64,220
32 38,474 40,879 48,093 50,497 52,903 55,307 57,712 60,116 62,522 64,926
WELS COMPENSATION GUIDELINES
Salary Matrix
2024/25
21
WELS Synodical Salary Range Assignments
Revised July 1, 2017
Position
New Column
Assignment
Early Childhood Ministry Teacher (no degree)
A
Early Childhood Ministry Teacher (w/ associate
deg.)
B
Teacher (BS or BA base)
C - F
Secondary Teacher
D - G
Early Childhood Ministry Director
D - G
Prep Professor
D - G
Staff Minister
D - G
Principal
E - H
Christian Giving Counselor
E - H
Prep Vice President
E - H
Prep Dean
E - H
College Professor
E - H
Pastor
E - H
Home Missionary
E - H
World Missionary
E - H
CMM Associate Administrator
E - H
CMM Associate Director
E - H
CMM National Coordinator
E - H
Mission Counselor
E - H
CMM Administrator
F - I
CMM Director
F - I
Prep President
F - I
College Vice President
F - I
College Dean
F - I
Seminary Professor
F - I
Seminary Vice President
F - I
College President
G - I
Seminary President
G - I
Synod President
J
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Notes
1. There is a 50% spread between 0-30 years of experience.
2. Columns D-J increase in 5% increments over column C. (For example, Rate Range
E is 10% greater than Rate Range C, Rate Range F is 15% greater, etc.)
3. Each called worker's actual salary is determined by finding the applicable experience
row and determining the appropriate rate range. (For example, a teacher with 10
years’ experience should receive a salary between $36,593 and $42,082. Salaries
greater than $36,593 would recognize additional education credentials and
responsibility levels.)
4. The entire Salary Matrix will be reviewed annually and adjusted as needed to reflect
changes occurring in the economy.
5. The basis for the housing equity allowance is the base salary.
6. The cost of living adjustments is based on the worker’s salary amount.
7. SECA tax reimbursement, housing allowances, and housing equity are provided in
addition to the worker's salary amount.
8. The online Called Worker Compensation Calculator helps a calling body consider
the impact of additional responsibilities and education in determining where in the
suggested salary range the worker ought to be placed.
WELS Compensation Plan Worksheet
Visit wels.net/cwcompcalc for the Called Worker Compensation Calculator with options to
print/save a worksheet.
