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The Vatican says it has decided to give financial rewards to employees who are doing a good job.
It says it will take into account issues such as "dedication, professionalism, productivity and correctitude" when awarding a pay rise.
It says that "this novelty brings an element of incentive and remuneration into the Vatican salary system".
More than 4,000 people, from cardinals to cleaners, work at the Vatican - the world's smallest state.