The Times has the story
The Vatican will offer a three-tier “level of merit” bonus system, with the top bonus being 10 per cent of salary. “Meritocracy has breached the Vatican walls,” Il Messaggero, the Rome daily newspaper, said. The deal, to take effect in January, was negotiated with the Vatican’s association of employees, the ADLV, the closest organisation to a trade union in the Holy See. There are also about 1,000 clergy and nuns in Vatican City – one of the world’s smallest sovereign states. It is not clear how their “productivity” is to be measured, but this should prove rather easier with the administrators, secretaries, gardeners and mechanics, and the staff of the Vatican Museums, the Vatican Bank and Vatican Radio and Television.According to The Times, 'When he was once asked how many people worked in the Vatican, Pope John XXIII (1958-63) is said to have replied: “About half, I think.”'