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Pope Leo XIV Reverses Salary Cuts, Celebrates Birthday with Vatican Employees

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In Short: Pope Leo XIV has repealed salary cuts imposed by his predecessor and canceled plans to move the Vatican's secret archives, reversing financial measures taken during the pandemic.

Pope Leo XIV has rescinded salary cuts imposed by Pope Francis in 2021, as part of cost-saving measures during the pandemic. The decree also canceled plans to move the Vatican's secret archives and library holdings out of the city state, a move that had been planned by Francis.

Leo XIV celebrated his 71st birthday on Monday, but it was Vatican employees who received a gift as the Pope reversed financial measures that had affected them. The biennial pay raises for senior lay employees were frozen, but lower-ranking employees continued to receive raises.

According to reports, the Vatican faced a structural deficit and a pension fund shortfall, estimated at around 70 million euros and 1 billion euros respectively. The pandemic also closed the Vatican Museums, depriving the Holy See of a significant source of revenue, and the Vatican’s coffers suffered from investment and currency fluctuations.

In a speech, Cardinal Peter Czerny cited Pope Leo XIV’s recent encyclical Magnifica Humanitas, emphasizing the need for shared responsibility in achieving sustainability. The Pope also noted that unprecedented opportunities have arisen to create new spaces within Vatican City itself, and ordered the construction of a new building to house the secret archives and library holdings.

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