Big Law Salary Update 2025

Tom Borman LawFuel contributor

The legal profession has always been synonymous with prestige and substantial compensation, but nowhere is this more evident than in BigLaw. And during 2025 the salary scales at major law firms have reached unprecedented heights, with first-year associates commanding six-figure salaries that rival senior executives in other industries.

Understanding the BigLaw salary situation isn’t just about numbers—it’s about comprehending a complex ecosystem that shapes legal careers and drives the ambitions of law students nationwide.

Understanding the BigLaw Salary Structure

BigLaw firms operate on a sophisticated compensation model that balances base salaries with performance bonuses, creating total compensation packages that can exceed half a million dollars for senior associates.

The foundation of this system rests on what’s known as the Cravath Scale, a benchmark that has dominated BigLaw compensation for over a century.

The current 2025 salary structure reflects significant increases from previous years, with first-year associates now earning base salaries of $225,000, representing a substantial jump from the $215,000 baseline established in 2023. 

This increase is to retain top legal talent in an increasingly demanding market.

The 2025 Cravath Scale Breakdown

The latest compensation data reveals a carefully structured progression that rewards experience and loyalty:

• First-Year Associates: $225,000 base salary plus $20,000 annual bonus
• Second-Year Associates: $235,000 base salary plus $30,000 annual bonus
• Third-Year Associates: $260,000 base salary plus $57,500 annual bonus
• Fourth-Year Associates: $310,000 base salary plus $75,000 annual bonus
• Fifth-Year Associates: $365,000 base salary plus $90,000 annual bonus
• Sixth-Year Associates: $390,000 base salary plus $105,000 annual bonus
• Seventh-Year Associates: $420,000 base salary plus $115,000 annual bonus
• Eighth-Year Associates: $435,000 base salary plus $115,000 annual bonus3

This progression reveals an interesting pattern: the most dramatic salary increases occur between the third and fifth years, when associates develop specialized expertise and become more valuable to their firms.

The acceleration during these crucial years reflects the reality that junior associates have surprising leverage in the market, as firms have invested heavily in their training and cannot afford to lose them to competitors.

The Cravath Scale: Historical Context and Modern Relevance

Named after the prestigious firm Cravath, Swaine & Moore LLP, the Cravath Scale emerged in the early 20th century as a revolutionary approach to legal compensation. The firm pioneered the lockstep compensation structure, which links pay directly to an associate’s class year and experience rather than individual performance metrics.

This system created predictability and transparency in an industry that had previously operated with more subjective compensation models. While Cravath historically led salary announcements, the landscape has evolved, with firms like Milbank LLP and Davis Polk & Wardwell LLP now often taking the initiative in driving market rates upward7.

The lockstep model serves multiple purposes beyond simple compensation. It reduces internal competition among associates, encourages collaboration, and provides clear career progression markers.

But it also means that high-performing associates cannot significantly outpace their peers in compensation, leading some to seek performance-based alternatives at boutique firms or in-house positions.

Geographic Variations and Cost of Living Considerations

One of the most fascinating aspects of BigLaw compensation is how it largely ignores traditional cost-of-living adjustments that govern most industries.

Top-tier firms pay the “New York rate” across major markets, including San Francisco, Los Angeles, Chicago, Houston, Dallas, Boston, and Washington D.C..

This approach creates significant disparities in purchasing power across different markets. According to recent analysis, Houston and Dallas BigLaw associates enjoy more than double the buying power of their New York counterparts, while also benefiting from zero state income tax. 

The implications are substantial:

Buying Power by Market (NYC = 1.0):

• Houston: 2.5x
• Dallas: 2.2x
• Chicago: 1.9x
• Atlanta: 1.9x
• Los Angeles: 1.6x
• Boston: 1.6x
• Washington D.C.: 1.5x
• San Francisco: 1.2x
• New York City: 1.0x

This geographic arbitrage opportunity has led many associates to consider lateral moves to markets where their BigLaw salaries stretch further.

The trend has accelerated as firms expand aggressively into secondary markets while maintaining New York-level compensation to attract top talent.

Partner Compensation: The Million-Dollar Club

While associate salaries capture headlines, partner compensation represents the true pinnacle of BigLaw earning potential. Recent data shows that average BigLaw partner compensation has reached $1.4 million, representing a staggering 26% increase since 2022. This record-high figure reflects several key trends:

The increase stems primarily from a 26% rise in average partner originations—the business that partners bring to their firms. Additionally, billing rates have increased by 36%, allowing firms to generate more revenue per hour of legal work. Despite these increases, billable hours have remained relatively stable, averaging 1,721 hours annually, only 2% higher than levels reported in 2014.

This compensation growth has created what many describe as the new 1% phenomenon, where BigLaw partners increasingly rival Wall Street executives in total compensation. The trend reflects the premium that corporate clients place on sophisticated legal expertise in an increasingly complex regulatory environment.

The Reality Behind the Numbers: Work-Life Balance and Expectations

The impressive compensation figures in BigLaw come with equally impressive expectations. Most firms require associates to bill between 1,900 and 2,400 hours annually, with many associates working 60 to 80 hours per week to meet these targets. The pressure extends beyond mere hour requirements to include:

• Client Development: Senior associates are expected to contribute to business development efforts
• Pro Bono Work: Most firms require additional unbillable hours for public service
• Administrative Tasks: Training, recruiting, and firm management activities add to the workload
• Continuing Education: Staying current with legal developments requires ongoing investment

The demanding nature of BigLaw practice has created what industry observers call the “golden handcuffs” phenomenon.

As one LinkedIn commentator noted, “Once you’re in this system, it’s hard to leave. You have to be insane to leave salary increases like this”. The substantial compensation makes it financially difficult to transition to other legal careers that typically pay significantly less.

Midsize Firm Alternatives and Market Dynamics

The compensation gap between BigLaw and midsize firms has widened dramatically, creating career dilemmas for many attorneys. Recent discussions among lawyers reveal that midsize firms in major markets typically pay sixth-year associates between $165,000 and $180,000, while BigLaw associates at the same level earn $350,000 to $450,000.

This disparity exists despite comparable billable hour requirements, with both firm types typically expecting around 1,900 hours annually. The difference lies primarily in billing rates and client sophistication. BigLaw firms command premium rates for complex transactions and litigation, while midsize firms often handle more routine matters at lower hourly rates.

For many attorneys, the choice between BigLaw and midsize firms involves weighing compensation against other factors:

BigLaw Advantages:

• Substantially higher compensation
• Prestigious client work
• Extensive training and mentorship
• Strong alumni networks
• International opportunities

Midsize Firm Benefits:

• Greater work-life balance
• More client interaction
• Faster path to partnership
• Diverse practice opportunities
• Less bureaucratic environment

Bonus Structures and Total Compensation

Base salaries represent only part of the BigLaw compensation equation. Annual bonuses can add $20,000 to $115,000 to total compensation, depending on seniority level and firm performance. These bonuses typically depend on:

• Billable Hour Targets: Meeting or exceeding minimum requirements
• Firm Profitability: Overall financial performance affects bonus pools
• Individual Performance: Quality of work and client feedback
• Business Development: Contributions to firm growth and client relationships

Special bonuses may also be awarded for exceptional performance, major deal completions, or retention purposes. Some firms have introduced “market adjustment” bonuses to remain competitive when rivals increase compensation.

The bonus structure creates additional pressure on associates to maximize billable hours and maintain high performance standards, as we know only too well with our reportage on biglaw workhours.

However, it also provides firms with flexibility to reward exceptional contributors and adjust compensation based on market conditions.

Career Trajectory and Long-Term Considerations

The BigLaw salary scale reflects more than current compensation as it represents a career trajectory with significant long-term implications. Associates who remain in BigLaw face several potential paths, such as:

Partnership Track: The traditional goal involves progressing from associate to partner, typically taking 8-10 years. Partners who achieve this milestone can expect compensation in the seven-figure range, but the process is highly competitive with low success rates.

Senior Associate Roles: Some attorneys remain as senior associates or counsel, earning substantial salaries without partnership responsibilities. These positions offer high compensation with somewhat better work-life balance.

In-House Transitions: Many BigLaw associates eventually move to corporate legal departments, trading some compensation for better hours and direct business involvement.

Boutique Opportunities: Specialized boutique firms may offer competitive compensation with more focused practice areas and entrepreneurial opportunities.

The timing of career transitions often correlates with the salary progression pattern.

Many associates find years three through five optimal for lateral moves, as their skills are highly developed but they haven’t yet become too specialized for alternative career paths.

Market Trends and Future Projections

Several trends are shaping the future of BigLaw compensation that need mention.

Technology Integration: Firms are investing heavily in legal technology, potentially affecting staffing needs and compensation structures. While technology may reduce some routine work, it’s also creating demand for tech-savvy attorneys who can leverage these tools effectively.

Client Pressure: Corporate clients increasingly scrutinize legal spending, potentially constraining future rate increases. However, the complexity of modern business continues to drive demand for sophisticated legal services.

Talent Competition: Competition for top legal talent extends beyond traditional BigLaw firms to include technology companies, financial institutions, and consulting firms offering competitive packages.

Work-Life Balance Initiatives: Firms are experimenting with flexible work arrangements and wellness programs to address associate burnout and retention challenges.

Global Expansion: International growth continues to drive compensation increases as firms compete for talent capable of handling cross-border transactions and regulatory matters.

Frequently Asked Questions

Q: How does the 2025 BigLaw salary scale compare to previous years?

A: The 2025 scale shows continued upward pressure, with first-year associate salaries reaching $225,000, up from $215,000 in 2023. The most significant increases appear in mid-level positions, with fourth-year associates now earning $310,000 compared to $295,000 in 2023.

Q: Do all BigLaw firms follow the Cravath Scale exactly?

A: While many firms use the Cravath Scale as a benchmark, compensation can vary. Some firms exceed the scale to attract top talent, while others may pay slightly below market in secondary markets or for specific practice areas.

Q: What billable hour requirements come with these salaries?

A: Most BigLaw firms require 1,900-2,400 billable hours annually. This typically translates to 50-70+ hour work weeks when accounting for non-billable activities like training, business development, and administrative tasks.

Q: How do BigLaw salaries compare to other high-paying careers?

A: BigLaw associate salaries are competitive with investment banking, management consulting, and technology roles. However, the work-life balance considerations often differ significantly across these industries.

Q: What factors determine bonus amounts in BigLaw?

A: Bonuses typically depend on billable hour achievement, firm profitability, individual performance, and market conditions. They can range from $20,000 for first-years to $115,000+ for senior associates.

The BigLaw salary landscape in 2025 represents both unprecedented opportunity and significant challenges. While the compensation levels continue to attract top legal talent, the demanding nature of the work and lifestyle considerations ensure that these positions remain highly competitive and selective.

For those considering BigLaw careers, understanding both the financial rewards and professional demands is essential for making informed decisions about their legal careers.

BigLaw compensation will likely remain a bellwether for the broader market, influencing everything from law school enrollment to career planning for legal professionals across all practice areas.

The frequently massive investment in legal talent reflected in these salary scales underscores the continued importance of sophisticated legal expertise in our increasingly complex business environment.