Clifford Chance has become the latest magic circle firm to raise its newly-qualified (NQ) lawyer pay in a salary war that has no sign of slowing down.
The elite firm confirmed its NQs will now be paid £150,000 per year, up from £125,000, effective from 1 May 2024.
In addition, Clifford Chance has also increased trainee pay from £50,000 to £56,000 in year one and £55,000 to £61,000 in year two from 1 September 2024.
The firm has not commented on the new compensation.
Clifford Chance has followed its fellow magic circle competition after Freshfields raised its salary to the £150,000 mark on 3 May, with Linklaters following on 17 May.
Commenting at the time, Paul Lewis, Linklaters’ managing partner, said the firm is “committed to rewarding our people competitively in our market.”
Missing from the £150,000 mark is the nearly merged UK-US firm A&O Shearman, which has not moved from the £125,000 starting band despite breaking into the ranks of the largest law firms in the world.
Despite the hike in the magic circle field for its junior lawyers, it still trails behind its US competitors in the London market.
Earlier this month, Quinn Emanuel Urquhart & Sullivan hiked the salaries of its NQ London lawyers to a whopping £180,000 per year. Quinn joined fellow US firm Gibson Dunn, which also pays its London NQ £180,000.
It’s likely it won’t end there.
Speaking to City A.M. earlier this month, Christopher Clark, director at Definitum Search, said it’s likely to be just weeks before the top US firms raise again, most likely to £190,000/£195,000.