. . But US-Based Law Firms Continue To Dominate The Law Pay Rates

Norma Harris, LawFuel contributor

The battle for top legal talent in the UK is really heating up, and firms are putting their money where their mouth is—especially when it comes to newly qualified (NQ) lawyers.

CMS, DLA Piper, and Ashurst have all just bumped up their NQ salaries.

CMS has raised its London NQ salary to £120k, up from £110k, which means they’re now on par with Simmons & Simmons and Travers Smith. And it’s not just London: their NQs in Bristol are now getting £76,500 (up from £70k), while those in Manchester, Sheffield, and Liverpool are up to £68k (from £62k), and in Scotland it’s £68k too (from £60k). That’s a pretty sweet bump across the board!

DLA Piper NQs are now looking at £130k, which is a hefty 18 percent year-on-year increase with increases at a lower level in the NQs in the other UK offices.

Ashurst used to pay its London NQs £125k, but as of May 1, that’s jumped to £140k putting them on a par with Macfarlanes. Only the Magic Circle firms are ahead, with all of them having upped their NQ pay to £150k last year.

US Firms Continue Domination

Even with all these increases, the Magic Circle isn’t at the very top of the London market anymore. That spot is held by the big US firms, who continue to exceed UK pay rates as they shake up the London legal pay rates and the London legal market.

Quinn Emanuel and Gibson Dunn are leading the charge with a jaw-dropping £180k for NQs. Paul Weiss, which is just launching a new UK training contract, is set to pay its first group of NQs the same £180k when they qualify.

US firms are anchored in the world’s largest and most profitable legal market, being the United States, which gives them deep financial resources and allows them to fund aggressive expansion and pay top dollar for talent in global hubs like London. They can effectively “subsidize” their international offices with profits from their US operations, which is something UK firms just can’t match.

US firms also tend to have a laser focus on the most profitable practice areas like private equity work, which means they can afford to pay higher salaries and still maintain strong profit margins.

Just below the top US-based firms, there’s a whole gang of other elite US firms paying £175k or more. Sullivan & Cromwell is at £177k, while Goodwin, Sidley Austin, and White & Case have all recently bumped their NQ rates to £175k. We reported recently of Hogan Lovells lifting their pay rates to

The big money with the US firms also sees them deploy compensation structures that are more performance-driven and transparent. At the associate level, US firms typically offer higher base salaries and clearer bonus targets, so if you hit your hours, you get a big bonus. 

At the partner level, they offer profit-sharing, guaranteed draws, and direct rewards for bringing in clients, which can far outstrip the traditional lockstep model used by Magic Circle firms, which makes US firms especially attractive to ambitious lawyers looking for maximum earning potential.

As we recently reported, the Magic Circle is having something of an identity crisis as it attempts to redefine itself in a highly competitive market.

FAQs: UK Law Pay Rates and the US Firm Advantage

1. Why are US law firms paying more than UK firms in London?
US law firms are able to offer much higher salaries because they are anchored in the lucrative US legal market, which generates significant profits. This allows them to fund aggressive expansion and offer top salaries in London, especially for newly qualified (NQ) lawyers.

2. How much do newly qualified (NQ) lawyers earn at top UK and US firms in London?
As of recent updates, top US firms in London pay NQs £170,000 or more, while Magic Circle UK firms pay around £150,000 (with some exceptions). Other major UK firms generally offer between £90,000 and £115,000 for NQs, with some recent increases pushing some firms higher.

3. What is the average salary for a lawyer in the UK?
The average lawyer salary in the UK is about £34,361, but this varies widely depending on experience, location, and type of firm. In London and at top firms, salaries can be significantly higher—especially for NQs and associates at international or US-based firms.

4. How do pay increases work at UK law firms?
UK firms typically offer annual salary increases of £3,000–£10,000 for associates, but these increases can be modest compared to the larger jumps seen at US firms. Recently, UK firms have become more creative with bonuses to stay competitive1.

5. Are US law firms only focused on London?
While US firms are most prominent in London due to its status as a global legal hub, they also have a presence in other major UK cities. However, the highest salaries are concentrated in London.

6. What’s the difference between Magic Circle and Silver Circle firms in terms of pay?
Magic Circle firms generally pay more than Silver Circle firms, but the gap has narrowed recently. Magic Circle firms now pay NQs around £150,000, while Silver Circle firms are approaching this level.

7. Why do some lawyers earn much less than the headline figures?
Headline salaries at top London firms are for the most competitive roles. Many lawyers work at smaller firms, in regional offices, or in less lucrative practice areas, where salaries are much lower—sometimes close to the UK average.

8. How do guideline hourly rates for solicitors compare to law firm salaries?
Guideline hourly rates (GHR) are set for court cost assessments and reflect what clients might be charged for legal work. For example, a senior solicitor in London might have a GHR of £566 per hour, but this is not the same as their salary—it’s what the firm charges for their time.

9. Are there opportunities for high pay outside London?
Yes, but salaries are generally lower outside London. However, other large cities like Manchester, Birmingham, and Bristol offer good earning opportunities, especially at regional offices of national and international firms.

10. What should I consider when comparing law firm salaries?
Consider the total compensation package (base salary, bonuses, benefits), the type of work, work-life balance, and career progression opportunities—not just the headline salary figure.