Concierge Salary, Fringe Benefits, and the Impact of the Minimum Wage

How Is the Concierge Salary Determined?

The apartment concierge\'s salary is determined by the board of unit owners\' decision and, as a rule, cannot be below the minimum wage. In most apartments, the concierge salary is set at or near the minimum wage. The salary must be clearly stated in the employment contract.

Fringe Benefits and Residence

Alongside the salary, some fringe benefits may come to the agenda. The most important is residence allocation: many apartments allocate a unit (concierge apartment) to the concierge. The effect of residence allocation on the salary and its legal evaluation requires attention. We covered the status of the concierge apartment in our concierge apartment article.

Total Cost

The apartment\'s actual cost for the concierge is much more than the net salary. Items added to the total cost: employer\'s social security premium, residence if any, annual leave, bonuses, or fringe benefits. For this reason, when budgeting, the "total employer cost" — not the "net salary" — should be calculated.

Impact of the Minimum Wage

Because the concierge salary is tied to the minimum wage, every minimum wage increase directly reflects on the apartment budget. In personnel-heavy buildings, the minimum wage increase is the largest trigger of a dues increase. We covered this impact in detail in our dues increase and minimum wage article.

Impact on the Budget

The concierge cost must appear as a separate and clear item in the operating project (budget). The total of salary, social security, and fringe benefits constitutes a significant part of the annual budget. We explained budget planning in our operating project article.

Common Mistakes

• Salary below the minimum wage: Not legally possible.
• Calculating only the net salary: When social security and fringe benefits are skipped, the budget is wrong.
• Not projecting the minimum wage increase: This increase must be planned in the annual budget.

This content is for informational purposes. Refer to current legislation and an accountant for salary and fringe benefits.