Sample Letter Of Agreement Between The Rector And The Church Page 2

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Periods of Leave Without Pay
Unpaid leave: The Rector may petition to the Vestry for an unpaid leave of absence of
up to 6 months.
Family leave: The Rector is eligible for 6 weeks of unpaid family leave per year.
Military service or jury duty: The Rector shall be granted leave for military service or
jury duty as required by law and in consultation with the Wardens.
Compensation
Cash Stipend:
The Rector shall receive an annual cash stipend of $___________, a portion of which is
allocated to a housing allowance, if applicable. The Rector will be paid on the 15th and the last
day of each month. The stipend will be reviewed and adjusted annually based on Episcopal
Church in Minnesota minimum clergy compensation and cost-of-living adjustment set by the
Council, the Rector’s years of service as a priest, merit pay and other criteria mutually agreed
upon by the Rector and the Wardens and Vestry.
The Rector, Wardens, one Vestry person, and one non-Vestry parishioner will conduct the
annual Compensation Review in September, to be brought as a recommendation to the Vestry
at its October meeting.
The Priest shall receive Self-Employment Tax Allowance in an amount equal to 6.65% of the
estimated Self-Employment Tax resulting from the terms of this agreement.
Housing
Church-Owned Housing:
The Rector will be provided at [address:] ____________________________________. This
housing will be kept in good repair, at the expense of the Church. Additionally, the Church
will provide heat, water, gas, electricity, sewage and trash disposal, and reimbursement for
church-related telephone expenses.
[It is further recommended that the Church provide the Rector with an annuity equivalent in
value to the equity he or she would build up through making regular mortgage payments, were
a housing allowance provided instead.]
Housing Allowance:
A portion of the annual cash stipend will be allocated to a housing allowance. Each Rector’s
housing allowance is determined by the Vestry, in consideration of the amount requested by the
Rector. The Vestry will establish the amount of the allowance prior to the beginning of the
year by formal resolution, documented in writing.
Rector Letter of Agreement — INSERT DATE — page 2

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