Pope Francis ordered cardinals to accept a 10 percent cut in pay and cut the salaries of most other clergy working in the Vatican to save employees’ jobs as the coronavirus pandemic has hit the Holy See’s revenue.
The Vatican said on Wednesday that Francis issued a decree introducing proportional cuts as of April 1. A spokesman said most lay employees would not be affected by the cuts.
A leading Vatican prelate said it is believed to be the first time in memory that a pope has taken such action.
Francis, 84, of working-class family, has always insisted that he does not want to fire people in difficult economic times, even when the Vatican continues to run deficits.
Cardinals who work in the Vatican and live there or in Rome are believed to receive salaries of about 4,000 to 5,000 euros ($ 4,730 to $ 5,915) per month, and many live in large apartments with rents well below the value of Marketplace.
Most priests and nuns who work in Vatican departments live in religious communities in Rome, such as seminaries, convents, parishes, universities and schools – giving them greater protection against economic crises.
They have a much lower cost of living than lay employees – such as police, doormen, firefighters, cleaners, art restorers and maintenance personnel, who live in Rome and often have a family.
It is these lay workers that the pope seems to want to protect, since most of his employment levels were not listed in the papal decree. Vatican salary levels range from levels 1-10 for most employees. Senior positions have four grades, from C to C-3.
In addition to the cardinals, other clergy will see their wages cut by between 3% and 8%. Salary increases scheduled for all but the lowest three salary levels will be suspended until March 2023.
Museums closed by pandemic
The Vatican’s top economic official said earlier this month that the Holy See, the central administrative body of the Roman Catholic Church worldwide, may have to use 40 million euros ($ 47 million) in reserves for the second consecutive year while the COVID-19 pandemic burns through your finances.
A staff member stands at the entrance to the Vatican Museums as they reopen after restrictions on coronavirus have been eased in Rome, Italy [File: Guglielmo Mangiapane/Reuters]
It expects a deficit of around 50 million euros ($ 59 million) this year. Revenue is expected to be around 213 million euros ($ 252 million) in 2021, down 30% from 2020.
St. Peter’s Basilica and the Vatican Museums, the latter a dairy cow that received about six million paying visitors in 2019, were closed or only partially opened during much of 2020 because of the pandemic. The museums were due to reopen this month, but remained closed due to a new blockade by Italy.
In a seven-point preface to the decree explaining why action was needed now, Francisco said the pandemic “has negatively affected all sources of income for the Holy See and the Vatican City State.”
He stated that, although both currently have “adequate capitalization”, he feels the duty to guarantee “sustainability and balance between income and expenses” in the current economic climate.
Last year, top Vatican administrators ordered the freezing of promotions and hiring and a ban on overtime, travel and major events in an attempt to contain costs.
The Holy See’s budget covers entities in Rome that oversee the church’s government of 1.3 billion members worldwide, their diplomatic representations and media operations.
Vatican City, including the Vatican Museums and the Vatican Bank, has a separate budget, although the proceeds of both are often transferred to the Holy See to help make up for the deficits.
The Holy See’s revenues come from donations, real estate management and investments.