The decision was announced in a letter from the pope on Wednesday, according to the news agency Reuters.
The letter states that the cardinals' salaries will be reduced by ten percent, while priests and other employees can expect a slightly smaller drop-out rate.
Tourist money is missing
The background to the economic hardships is that the Vatican has lost important revenues linked to tourist destinations, such as St. Peter's Basilica.
In total, a deficit of over half a billion is expected this year.
The letter to the staff states that "the goal is to protect existing jobs".
Pope Francis himself does not take out a worldly salary, according to the Vatican.