Pope Francis has ordered cardinals to cut 10% of salaries and reduce the salaries of most other clergy working in the Vatican to save the work of employees, as the coronavirus pandemic has affected the Holy See’s revenue.
The Vatican said Wednesday that Francis issued a decree introducing proportional cuts from April 1. A spokesman said most lay employees would not be affected by the cuts.
A Vatican prelate said it was believed to be the first time he remembered a pope taking such action.
Francis, 84, from a working-class family, has often insisted he does not want to fire people in difficult economic times, even while the Vatican continues to run deficits.
It is believed that cardinals who work in the Vatican and live there or in Rome earn about 4,000 to 5,000 euros ($ 4,730 to $ 5,915) a month and many live in large apartments with rents well below market value.
Most priests and nuns working in Vatican departments live in religious communities in Rome, such as seminaries, convents, parishes, universities, and schools, providing them with greater protection from economic recessions.
They have much lower living expenses than lay employees, such as police, ushers, firefighters, cleaners, art restorers, and maintenance personnel, who live in Rome and often have families.
It was these secular workers whom the pope seemed to want to protect, as most of his levels of occupation were not included in the papal decree. Vatican payrolls range from levels 1-10 to most employees. Senior positions have four grades, from C to C-3.
Aside from the cardinals, other clerics will see their salaries reduced by between 3 and 8 percent. Scheduled wage increases for all but the three lowest wage grades will be suspended until March 2023.
Museums closed due to 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, should use 40 million euros ($ 47 million). in reserves for the second year in a row due to the burning of the COVID-19 pandemic. through their finances.
A staff member is at the entrance to Vatican museums when they reopen after easing coronavirus restrictions in Rome, Italy [File: Guglielmo Mangiapane/Reuters]
He expects a deficit of about 50 million euros ($ 59 million) this year. Revenue is projected to be about 213 million euros ($ 252 million) in 2021, 30% less than in 2020.
St. Peter’s Basilica and the Vatican Museums, the latter a cash cow that received about six million paying visitors in 2019, were closed or only partially open for much of 2020 due to the pandemic. The museums were due to reopen this month, but remained closed due to a new closure by Italy.
In a seven-point preface to the decree explaining why action was needed now, Francis said the pandemic “has negatively affected all sources of revenue for the Holy See and the Vatican City State.”
He said that while both currently had “adequate capitalization,” he felt a duty to ensure “sustainability and a balance of income and expenditure” in the current economic climate.
Last year, top Vatican administrators ordered freezing promotions and hiring and banning overtime, travel and large events to try to contain costs.
The Holy See’s budget covers Rome’s entities that oversee the world church’s 1.3 billion-member government, its diplomatic representations, and media operations.
The Vatican City, including the Vatican Museums and the Vatican Bank, has a separate budget, although the proceeds from the two are often transferred to the Holy See to help cover deficits.
The income of the Holy See comes from donations, real estate management and investments.