The Pope reduces the salary of cardinals to face the crisis in the Vatican accounts

The pandemic has also wreaked havoc on Vatican finances, which have already suffered difficulties for several years.

Forecasts of a skyrocketing deficit and a steep drop in revenue have forced the Holy See to adjust costs and approve the smallest budgets in its recent history.

Pope Francis has also ordered that the highest salaries be cut, that is, those of cardinals, high officials of the curia, clergy and religious.

The aim is to protect ordinary and low-paying and medium-paying jobs, mostly held by lay people.

According to the apostolic letter signed by the Pontiff and published this Wednesday, starting next April, the salaries of cardinals who work in the service of the Holy See, the Vatican State, the papal basilicas or the vicariate of Rome will be lowered by 10 %.

While the salaries of the senior positions of these organizations will be reduced by 8%.

Priests, men and women religious will also see their payroll reduced (3%).

The cardinals' salaries are not made public, and they also usually receive as compensation the use of apartments at reduced rental prices.

Men and women religious, however, usually live in communities in Rome.

Approximately 50% of the Vatican budget is destined to cover the personnel expenses of the almost 6,000 employees that the Holy See has.

The Pope in his letter points out that “an economically sustainable future now requires, among other decisions, to take measures regarding the remuneration” of the workers.

Francisco has stated on other occasions that keeping jobs is the top priority right now.

The Vatican finance minister, the Spanish Jesuit Juan Antonio Guerrero Alves, had recently pointed out that "at least in the short term, 50% of spending is not flexible."

Salaries in the Vatican are distributed according to ten levels of remuneration –– subdivided into several levels– that depend on the degree of responsibility of the worker and their occupations.

The categories affected by the cuts are only the highest, following criteria of "proportionality and progressiveness".

The salaries of the laity, who make up the vast majority of the staff, will not be touched.

Although for the employees of the six lowest levels, the application of the biennial increases for seniority is suspended between April 1, 2021 and March 31, 2023.

Francisco has also indicated that protecting families and employees with dependent children is a preference, hence also that the adjustments do not affect the floors of the laity.

In addition, the reductions for cardinals, religious and high officials will not apply if they prove that it is impossible for them to meet fixed expenses related to their own health or that of their relatives up to the second degree.

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The Vatican has not made public its budgets for 2021, and has only anticipated that they will be extraordinarily tight.

It has estimated that the debt this year can reach 50 million euros.

The pandemic has negatively affected the main avenues of income for the Holy See, as the Pope has pointed out.

The closure of the Vatican museums, which received thousands of visitors daily, and of St. Peter's Basilica, in addition to the drop in donations, have decimated the already battered Vatican accounts.

In the absence of knowing the data from last year, the Vatican has reported that while in 2019 the income was 307 million, by 2021 the collection is expected to fall by 30%, to 213 million.

The support of the faithful

Juan Antonio Guerrero Alves, the head of the Vatican's finances since the beginning of last year, has pointed out that the options to clean up the accounts of the Holy See involve reducing costs, "but not its mission."

To this end, it has implemented an important adjustment plan with a total reduction in expenses forecast of 8%.

He has also advocated using the reserves if necessary and has asked the faithful for greater donations in the face of the difficult economic situation.

Improving transparency so that it is known what is done with the donations of the parishioners is one of its main objectives.