Pope Francis cuts cardinals and Curia salaries by another 10% as of Nov. 1

Valentina di Giorgio

Pope Francis Imposes New Financial Cuts on Vatican Salaries Amid Economic Strain

(ZENIT News / Vatican City, 10.29.2024).- Vatican City faces another wave of financial austerity as Pope Francis continues efforts to stabilize its finances. Following a reduction in rental discounts for Vatican housing a year and a half ago and a 10% salary cut for Curia officials in 2021, the Pope has now implemented further salary adjustments, eliminating specific allowances that had long formed part of the Curia’s monthly pay.

In a letter signed by Prefect of Economy Maximino Caballero Ledo, Curia cardinals and other Vatican employees learned of the new cuts. The announcement halts both the “Secretariat Bonus” and the “Office Allowance,” a change that equates to more than a 10% reduction in compensation for Curia officials. These changes, effective November 1, cut deeply into the incomes of the Vatican’s top collaborators, with cardinals now losing roughly €500 monthly, part of their previous €5,500 salary.

The letter, dated October 18, came just weeks after the Pope emphasized the importance of achieving “zero deficit” as a realistic, rather than theoretical, goal. Pope Francis’ letter underscored that each Vatican employee would need to make sacrifices, stating, “additional measures currently under review will require contributions from everyone.” Caballero Ledo conveyed that the Pope hopes this latest reduction will be seen as a “genuine act of cooperation for the good of the Church.”

This austerity decision coincides with preparations for the upcoming Jubilee, placing added pressure on Vatican resources. The Vatican’s long-standing financial issues, despite extensive reform efforts, continue to challenge its stability. Personnel expenses, which account for the bulk of the Vatican’s budget, remain an area requiring ongoing adjustments. In the most recent budget, the Vatican reported a deficit nearing €83 million, underscoring the urgency of further cost-cutting.

Mounting Discontent Among Vatican Employees

The latest cuts have compounded growing frustration among Vatican employees. Many are concerned about ongoing hiring freezes, functional-level restrictions, and limited opportunities for promotion. The ADLV (Association of Vatican Lay Employees) has expressed dissatisfaction over disparities in compensation adjustments. Though some bonuses have been awarded within departments like the Administration of the Patrimony of the Apostolic See (APSA), employees report feeling left out of unclear selection criteria and question the basis for these distinctions.

Meanwhile, there are indications that the Vatican’s historic supermarket, will soon transition to management under an Italian brand—a move that could disrupt another stable aspect of Vatican life. These changes add to the growing frustration over what employees see as inconsistent and unjust application of austerity measures. The ADLV noted that certain Vatican departments, like the Governatorate, Vicariate, and Vatican Bank, appear to operate with a degree of administrative autonomy, creating what some employees describe as inequality and even occasional workplace harassment.

Financial Challenges Highlighted by Structural Imbalance

The economic pressure on Vatican finances reflects both external and internal challenges. Revenue streams from global donations, real estate leases, ticket sales, and the Vatican Bank’s earnings have proven insufficient in recent years, necessitating continued austerity. Guerrero Alves, Caballero Ledo’s predecessor, raised concerns over the unsustainable financial structure two years ago, urging decisive actions to restore balance. The current salary and benefit cuts reflect the Pope’s response to this ongoing financial strain.

With more than 2,000 employees, personnel costs are the Vatican’s largest expenditure. As donations wane and traditional income streams remain under pressure, Pope Francis has signaled that these efforts are essential to secure the Church’s future. However, as austerity measures deepen and employee discontent rises, the Vatican faces a critical moment of balancing financial sustainability with morale within its walls.

Thank you for reading our content. If you would like to receive ZENIT’s daily e-mail news, you can subscribe for free through this link.

Pope Francis cuts cardinals and Curia salaries by another 10% as of Nov. 1 | ZENIT – English