Why Law Firm Salaries Keep Going Up? 💸

Hey there! 👋

If you’ve been following news about law firms, you may have noticed a trend: salaries for newly qualified (NQ) solicitors are on the rise. Just this week, Eversheds Sutherland and Pinsent Masons announced NQ pay hikes.

Let’s dive into what’s happening…

Don't have time for the full scoop? No worries, we've got you covered with a quick summary: click here

What’s happening? 🤷‍♀️

It’s no secret that UK firms have been in a talent war for the last few years, particularly for junior lawyers. Every year around this time, firms boost pay to stay competitive.

Here’s what the latest round looks like (so far):

Credit: Legal Cheek

US firms like Kirkland & Ellis and Latham & Watkins? They’re paying £170,000+ to their NQs in London. 👀

Why are salaries going up? 🧠

The short answer: competition from US firms.

US law firms have been expanding aggressively in London, and they’re bringing their New York-style pay with them. This means top UK talent is increasingly tempted to jump ship and move to US firms in London

To stop that, UK firms have two choices:

1. Raise pay (which they’re doing), or

2. Get creative with bonuses and perks

How lawyers get paid (quick refresher)👨‍⚖️

Here’s what the pay structure typically looks like at a commercial law firm:

• Trainees – Base salary only, usually no bonuses

• Associates – Higher salary + performance-related bonus (often 10–30%)

• Partners – Either salaried or equity. Equity partners take a slice of the firm’s profits, often under a “lockstep” system

This is important to understand because most of the salary action is happening at the NQ and associate level, where firms are under pressure to retain talent.

Why this matters for aspiring solicitors 🌍

✅ The good news

More cash on the table: If you’re entering the profession in the next few years, chances are you’ll benefit from higher starting pay.

Stronger bargaining power: With firms fighting over top grads, students at law schools and on vacation schemes are in a better negotiating position.

❌ But also…

Higher pressure: Bigger salaries often come with longer hours, tighter deadlines, and greater expectations.

Focus on money over fit: With so much attention on pay, some grads may overlook whether a firm’s culture, training, or work-life balance suits them.

Not all firms can keep up: Big City firms are raising pay, but smaller or regional firms may not be able to match.

What about the clients? 💼

✅ You get what you pay for:

With firms offering higher salaries, they can attract and retain some of the best legal talent. That means clients get access to better lawyers.

❌ But it’ll cost more:

To cover rising pay, firms often raise their fees. That means clients could be paying more for the same work.

🗞 Other news

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I hope you enjoyed this article. See you next week! 👋

Written by Chirag Morar