Pope Leo has repealed one of Pope Francis's decrees which had reduced the salaries of Vatican employees by up to 10%.

Francis imposed the cut in 2021 in an attempt to help the Holy See save money and jobs in the midst of the Covid pandemic.

However, in a decree issued on his 71st birthday, Leo said that while the measures adopted by Francis had been "necessary to face the exceptional challenge of the pandemic" they could "now be overcome, in the certainty that the institutions of the Holy See and the Vatican City State will continue, with various instruments, in their commitment to guarantee economic sustainability.”  

The 10% salary cuts had affected cardinals, with smaller cuts for priests and nuns. Pay rises had also been frozen for senior employees.

The pope’s decision is being seen as a signal that he is increasingly comfortable with the Holy See’s financial situation and its sustainability.

A Vatican budget statement in November 2025 showed that a financial deficit was almost halved between 2023 and 2024, dropping from 83.5 million euros (£71.4m)  to less than 44.5 million euros (£38m). External donations and income generation had also increased.