Compensation and Guidelines

Compensation and Guidelines

Greetings in Christ to you on behalf of the SD Synod Compensation and Guidelines Task Force.

The membership of this committee consists of rostered ministers, lay employees, and lay leaders from across the Synod and serves under the Support to Ministry Committee.

These guidelines are designed to serve as a resource to assist church leaders in compensating pastors, deacons, SAMs, and other church staff in ways that are fair, supportive, and mission-driven. They are recommendations, not legislative mandates. They are meant to be helpful, not dictatorial. The task force that drafted these guidelines hopes that this resource will enable compensation planning that strengthens the partnership among the Evangelical Lutheran Church in America (ELCA), the SD Synod, the congregation/parish, and all church staff members.

Key Updates adopted by the 2026 Synod Assembly for the 2027 Guidelines:

• The Salary Table reflects a 2.5% increase for both Rostered Ministers and Lay Staff from 2026. This is part of a multi-year plan to raise the salaries of clergy and lay staff.
  • Newly ordained ministers: $46,573
  • Salaried lay staff: $40,493
  • The suggested hourly rate for lay staff is $16.00. Congregations should be aware of the “prevailing” wages in their community.
• Portico Benefits created new Health Insurance Policies for 2026.
  • The 2027 recommendation is for either
    • Select Copay2000 Plan
    • Select HDHP2000 Plan with a $500/$1,000 HSA contribution.
  • ELCA Health Plan benefits should be provided for the pastor/deacon/SAM, spouse, and eligible children unless such coverage is waived because family members are covered by the spouse’s health insurance.
• For Pastors, Deacons, or SAMs below Guidelines, consideration should be given to
  • Make pension contribution as if “at Guidelines” for the actual years of ministry
  • Increase pension contribution to 12-15% of actual defined compensation, especially in the case of part-time ministry
  • Grant additional vacation time beyond the 5 weeks recommended
• Additional information for SAMs is included in the Guidelines for Lay Leaders and Staff.
  • Housing Allowance or Parsonage Use
  • Social Security (FICA)
  • Pension
  • Health Insurance
  • Disability & Life Insurance
  • Continuing Education
  • Vacation Time and Holidays
• NEW for 2027 — Lay Guidelines Section G: Overnight Chaperones
  • Clear communication and expectations before any event or trip are crucial to the success of any extended youth event and the well-being of church staff and volunteers.
  • FLSA rules apply to church staff (ministers or lay) who chaperone/supervise overnight or extended trips.
  • Hourly employees need to keep a time log when “on-duty”. Overtime rate is applied after 40 hours per week.
  • Salaried, non-exempt, employees – also need to keep a time log and overtime applies if “on-duty” for more than 40 hours per week.
  • Other expenses: Staff or volunteers should not be expected to pay for any registration, travel, or housing expenses.  A per diem food allowance should be included in the total budget for each chaperone.

The work of the committee is ongoing. Members of the committee welcome your suggestions and questions. We are called to serve both city and rural congregations. As a result, the scope of the work is diverse and challenging.

If you have any questions or concerns, please contact the Synod office at synod@sdsynod.org or (605) 274-4011.

Respectfully submitted by members of the Synod Guidelines & Compensation Task Force.