Vatican employees’ association meets financial report ‘with skepticism’

“Will the pay scales that were frozen in 2008 finally be updated?”

The Vatican association of lay employees criticized the Holy See’s recently released financial report, saying in a Dec. 1 statement that many Vatican employees “received the news with skepticism.”

St. Peter’s Square. Credit: Alamy.

The recent budget report seemed to demonstrate a turning point in the Vatican’s finances, as it shows a €1.6 million surplus after years of overspending, and a slashing of the Holy See’s structural budget deficit in half.

However, much of the gains have been the result of increased donations and one-time realization of investment gains, prompting questions about whether the Vatican’s progress is sustainable.

The statement from the Association of Vatican Lay Employees (ADLV) said the organization wished the Vatican would publish the complete budget, “detailing each item and providing the relevant explanatory/certification documentation.”

Instead, the group said, the Vatican has provided “slides that, while visually appealing, cannot be considered exhaustive for those wishing to delve deeper.”

Many members of the association, the statement said, received the news of the report “with skepticism and even greater uncertainty about their fate, and are once again hoping to see their suspended two-year contracts restored.”

“Will this hypothetical situation of greater economic stability also have positive effects on non-managerial staff?” it asked. “Will the pay scales that were frozen in 2008 finally be updated?”

In a summary report released Nov. 26 by the Secretariat for the Economy, the Holy See announced its financial results for the financial year ending in 2024.

According to the report, the Vatican’s structural budget deficit was almost halved between the 2023 and 2024 financial years, dropping from €83.5 million to less than €44.5 million. At the same time, the secretariat reported rises in income for the Holy See, including through external donations, financial investment performance, and operational income generation.

The results show the combined institutions of the Holy See posting a modest surplus of €1.6 million — the first time in years that the Vatican has finished a year notionally in the black.

However, the Vatican employees’ association argued that the surplus is more due to a growth in donations than actual structural changes in Vatican finances.

“This result comes from donations and improved financial performance due to favorable market trends over the past two years. This is more due to exceptional factors than to the decisions of the new Investment Committee… The budget thus appears positive, but not because of full operational stability. The structural problem remains unresolved,” the statement said.

According to the report, the Holy See’s annual budget shortfall shrunk from 2023 to 2024 in the face of increased revenue from stable sources as well as the realization of capital gains from investments sold last year.

However, recurring operating income still fell short of budgeted operational expenses by more than 33 million euros. The remainder of the 2024 financial year’s returns came from an increase in external donations to the Holy See and the realization of investment gains amounting to a declared profit of more than 52 million euros. Details of the sources of external donations are not publicly declared by the Holy See.

Operational costs, according to the report, grew by nearly €40 million from 2023 to 2024, to a total of €1.275 billion which, according to the report, represent rising employment costs and inflation offset by ongoing costcutting measures.

The Vatican employees’ group called on Holy See authorities to conduct a thorough review of the Vatican’s staffing charts and hiring procedures.

“Can we hope for a job description analysis and a rigorous staff selection process at all levels? This would ensure a better distribution of human resources (and therefore a higher level of satisfaction) and fair and uniform treatment for all (e.g., same hourly pay and level for the same job),” the statement said.

The association also criticized the lack of transparency on the Vatican’s pension situation. The Pillar reported in April that the Vatican’s pension fund deficit was internally estimated at 1.4 billion in 2014 and it is widely believed to have grown ever since.

“What will happen to our pensions? Staff are the first to miss out on the benefits of a greater increase in this budget item (+€7.9 million). Perhaps the advantages are limited to specific staff groups?” the statement said.

Last year, the Vatican employee’s association released a statement lamenting that members did not even have access to the balance sheet of the pension fund.

“The data isn’t public,” that statement said. “Yet, when we contribute to a financial or pension plan, since we pay with our contributions, the accounts should be accessible to everyone… Pensions are also, and above all, a guarantee for future generations, in a spirit of fairness and justice, who have the right to a dignified future thanks to an adequate pension.”

“The vast majority of Vatican employees have already tightened their belts. The two-year pay cut will have a significant impact on many: up to €20,000 at the end of their careers. Wages have not been indexed to the cost of living, while the rent increase for Vatican properties has been adjusted for inflation,” the November 2024 statement added.

The new statement also criticized the growth in personnel costs, “evidently greater than that which would result from the normal adjustment of salaries for inflation or the progression of biennial increases.” It suggested that this increase “could be linked to higher senior salaries, promotions, new hires, or an increase in the number of managers.”

“Most employees have certainly not recovered the loss of purchasing power due to ever-increasing prices,” it added.