New data reveals a stark reality in the Australian legal profession, with top earners at major law firms enjoy salaries well above national averages, half of these same firms pay their lowest-level employees less than what’s typical in other industries.
Recent figures from the Workplace Gender Equality Agency Australia (WGEA) paint a worrying picture. Of the 79 law firms analyzed, 33 pay their lowest-earning employees below the nationwide average of $75,000.
The disparity is particularly striking at firms like McInnes Wilson, where the lowest earners receive just $42,000 on average, while the highest earners take home around $218,000 – a difference of $176,000.
The gender pay gap remains a significant issue too, as it does in most jurisdictions.
Nearly half of the 62 law firms with comparable data showed a worsening total remuneration gender pay gap. Firms including Spruson & Ferguson, Cornwalls, Meridian Lawyers, Jones Day, and Coleman Greig all reported gaps exceeding 44 percent.
“The legal industry should be leading by example in workplace equality,” said Australian Women Lawyers president Renee Bianchi. “Unfortunately, it seems that there is still some way to go.”
The numbers tell an interesting story about the profession’s compensation structure. While the average total remuneration across all Australian workplaces is about $121,000, law firms push that average up to $141,000. For the highest-paid quartile, law firms average $251,000 compared to the national average of $193,000.
Some firms stand out at both ends of the spectrum. Kennedys tops the chart for highest-quartile pay at $469,000, followed closely by Macpherson Kelley at $460,000 and Jones Day at $459,000.
Meanwhile, firms offering the lowest average total remuneration include Knowmore Legal Services, Turks Legal, Hunt & Hunt Lawyers, and Galilee Solicitors, ranging from $97,000 to $101,000.
Denise Farmer from Clio calls these findings a “wake-up call” for the industry. “If pay gaps persist, the risk of losing top legal talent – especially women – will only be greater,” she warns, noting that many professionals are already choosing smaller practices that offer better work-life balance over traditional big firms.
The data raises important questions about compensation fairness in an industry that prides itself on principles of justice and equality. With such significant disparities between top and bottom earners – and persistent gender pay gaps – the legal profession faces mounting pressure to address these inequalities.
