A pay war looks set to break out in the City after Clifford Chance last week announced salary and bonus increases that could see solicitors with three-and-a-half years' post-qualification experience earn up to £115,700.


Lawyers at the magic circle firm are to receive, on average, 15% pay rises and up to 40% bonus awards from 1 May. Trainees in year one will be paid £35,700, up from £31,400.



Tony Williams, principal of management consultancy Jomati, said the market was hot and the fight was on to get and retain the best people.



Mr Williams added: 'We saw the same in New York at the beginning of this year.



"But the more you're paid, the more you're asked to perform - and if there's a downturn, you're out.'



Clifford Chance London managing partner Jeremy Sandelson said: 'Our combination of generous salary increases and bonus awards reflects the continued strong performance of the London office... [and helps] us to offer a career that is very rewarding in both financial and developmental terms.'



Jonathan Rayner