Private Practice
Junior salaries are receiving particular attention with trainee pay hikes and NQ salaries rising on average by between 5 and 8%. This will take the average NQ pay to £51,000 at large/medium sized firms with some firms paying as much as £55,000. The US firms if anything, are making bigger increases with rises of $20,000 for NQs at top tier New York firms whilst the top West Coast firms are in close pursuit with hikes of $10,000.

Over the NQ threshold, salary packages vary enormously. The City giants are all likely to hike their salaries substantially with some speculation that this will be by as much as 40% for mid-level associates. Mid-tier firms are also budgeting for bigger pay packets, with increases of around 8-10%. Hikes are also likely at smaller, West End and niche practices to ensure they keep hold of their top talent as they become a busier hunting ground for bigger City firms. As well as an increase in salary levels there is also likely to be an overall widening of pay bands to allow firms more flexibility to attract and retain the best lawyers.

In House
At the senior level, companies look set to introduce more aggressive performance based pay.

As demand for lawyers at all levels intensifies, companies are also considering other ways to recruit the best talent. Bonuses, golden handshakes, flexible benefit packages and larger than normal cost of living adjustments are likely to become more prevalent with some bonus payments expected to reach between 30-40%.

Temp & Paralegal
Salaries and benefits for paralegals have risen by about 6% in the last year and fixed-term contracts for locum staff are more attractive now than ever.

Firms are recognising the enormous operational value of temporary or contract staff and are increasingly willing to reward the right people accordingly.

For more detailed information on pay, click here for the EJ Legal Salary Review