US firm Akin Gump Strauss Hauer & Feld has increased newly-qualified salaries to a whopping £179,000 a year, the highest in the City by some distance.

The firm has increased its previous NQ rate by 9% from £164,000 – which was already the highest in the capital, narrowly more than fellow US firms Gibson Dunn and Goodwin which offer £161,700 and £161,500 respectively.

CMS Cameron McKenna Nabarro Olswang has also upped NQ pay in London from £95,000 to £100,000, following a rise from £82,000 in December.

The two firms’ decision follows a similar move by international firm Herbert Smith Freehills which last week announced it is increasing its NQ salaries by 14% to £120,000 plus a bonus, in light of the ‘intense competition for talent in the international legal sector’.

However, Allen & Overy and Linklaters – which both offer NQs £107,500, the joint lowest among the magic circle – said they had no imminent plans to raise rates.

Allen & Overy said it was not increasing salaries ‘at this time’, adding: ‘This is a prudent decision based on a number of factors, including the more challenging business environment.’

Linklaters, meanwhile, told staff it will not ‘rush’ into matching others’ rates and that it does ‘not believe that the right course of action is to rush into matching salaries at NQ level without properly considering the impact of any changes and the wider economic context’.

 

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