Freshfields has broadly matched magic circle rival Linklaters by upping its newly-qualified (NQ) rate to £66,000 from £65,000. The figure — on par with Link-laters — represents a 1.5% increase on last year’s NQ rate, with those further up the bands receiving increases of around 2%.
The rises mean a lawyer with one-year post-qualification experience (PQE) will earn £73,000, up from £71,500. Associates with two years’ experience move from £84,000 to £86,000 — a 2.4% rise. Lawyers with three years’ PQE move from £90,000 to £92,000.
The maximum bonus remains unchanged, with one and two-year PQE lawyers able to make up to £20,000, depending on performance, and three-year PQE lawyer able to make up to £35,000. Simmons, meanwhile, has increased its NQ rate by around 0.7%, taking it from £63,500 to £64,000.
Freshfields London chair Tim Jones (pictured) commented: “We have aimed to maintain our position in the marketplace. We recognise the market is going to move each year and we wanted to remain at the top end of our peer group.”
He added: “We have seen what others have been doing and are fairly happy with the way it has worked out.”
The pay rises come despite some City partners hoping to avoid increases given the downturn in the economy. So far, Herbert Smith is the only firm to freeze its rates. Allen & Overy and Lovells are expected to announce their associate salaries some time this week.
Stay up to speed with all the latest salary changes with the Legal Week Wiki pay league.
More news, deals and comment on Freshfields Bruckhaus Deringer