Pope Leo XIV has restored salary levels for cardinals and other Vatican officials, reversing austerity measures introduced by his predecessor, Pope Francis, during the COVID-19 pandemic.
The decision was contained in a decree issued on Monday, September 14, 2026, the same day Leo marked his 71st birthday.
Under the decree, the salary reductions introduced in 2021 were abolished with effect from September 1, 2026. The measure will not be applied retroactively.
Francis introduced the cuts as part of efforts to reduce spending and ease pressure on the Holy See’s finances during the pandemic.
The measures included reductions affecting cardinals and clergy, while some senior lay employees also had salary increases frozen.
Explaining the reversal, Leo said the cuts had been necessary to confront the exceptional financial challenge created by the pandemic but could now be lifted.
He added that Vatican institutions would continue efforts to ensure their economic sustainability.
The decision comes as the Holy See reports stronger financial results from the Institute for the Works of Religion, commonly known as the Vatican bank.
In its 2025 annual report published in May, the institute reported a net profit of €51 million, up 55.5 per cent from the previous year and its highest result in a decade.
The institution also reported €5.9 billion in total client assets and a Tier 1 capital ratio of 71.9 per cent.
Francis had introduced several cost-cutting measures during his pontificate as the Vatican confronted persistent budget pressures, with the COVID-19 crisis adding to the financial strain.
Leo’s decision removes one of those pandemic-era restrictions while maintaining the Vatican’s broader emphasis on financial sustainability.
The salary restoration is effective from September 1, meaning the affected officials will receive the restored rates going forward, but will not receive back payments for the period covered by the previous cuts.
The move represents one of the latest financial policy adjustments under Leo, who became pope in May 2025 following Francis’ death.
