Clifford Chance has raised its total pay package for new associates to £100,000, up from £91,000. It is the second magic circle firm to increase salaries in the face of competition from London offices of US-based practices.
Last month Freshfields Bruckhaus Deringer announced it would be paying newly qualified solicitors £100,000 as a base salary, up from £85,000. Associates have the opportunity to receive discretionary premiums on top of this.
Freshfields has also brought in a £10,000 maintenance grant for future trainees.
Eyes will now be on Slaughter and May, Linklaters and Allen & Overy to see if they follow suit.
Although Clifford Chance and Freshfields have significantly increased their salaries they still trail some US-headquartered firms which have been paying London NQs more than £100,000 since 2017.