2026 Dues Increase: The Impact of Inflation and the Minimum Wage

What Determines the Dues Increase?

A dues increase arises not from an abstract inflation figure but from the growth in the building's actual expense items. Two factors are decisive: general inflation (prices of goods and services) and the minimum wage increase (personnel cost). Which is more influential depends on the building's expense structure.

The Impact of the Minimum Wage

In buildings that employ a concierge or attendant, the largest expense item is generally personnel salary and the associated social security premiums. An increase in the minimum wage affects this item directly and immediately. For example, if personnel expenses make up half of the total budget, the increase in the minimum wage reflects on the dues at almost the same rate. For this reason, in personnel-heavy buildings, the minimum wage increase is the largest trigger of a dues increase.

The Impact of Inflation

Items other than personnel (electricity, water, maintenance supplies, contracted services) increase according to general inflation. Items such as the elevator maintenance contract, cleaning supplies, and common-area electricity are affected by price increases during the year. If the share of these items is high, inflation becomes more determinative in the dues increase.

How Is the Correct Increase Rate Found?

The correct method is to estimate each expense item separately and add them together. Update the personnel item according to the minimum wage increase and the other items according to the relevant price increases, add them up, and divide by the number of units or the land share. Applying a single rate to all items is misleading. We showed this calculation method step by step in our dues increase calculation guide.

The Increase Decision Is Made by the Board

The new dues calculated must be converted into an operating project and presented to the board of unit owners. The manager cannot apply this increase unilaterally; we explained the legal framework in our is a dues increase legal article.

Common Mistakes

• Applying a single rate: Applying the same percentage to all items gives an incorrect budget.
• Ignoring the minimum wage: In personnel-heavy buildings, this is the largest factor.
• Forgetting the reserve fund: Not allocating a share for unforeseen expenses creates trouble mid-year.

This content is for informational purposes. The increase rate varies according to your building's expense structure; obtain financial counsel if necessary.