New Zealand’s legal sector is experiencing unprecedented growth with a 7.8% salary increase—ranking fourth among all industries—but a significant “salary paradox” threatens talent retention across law firms.
The Hays Salary Guide FY25/26 reveals that while 84% of employers plan pay rises, the average 3.7% increase falls dramatically short of the 6% employees expect. For legal professionals, this gap is even more pronounced, with 39% seeking increases exceeding 5% but only 19% of legal employers planning to deliver.
Current legal salary benchmarks range from $41,000 for graduate lawyers to $270,000+ for partners, with corporate lawyers earning up to $169,000. However, 31% of legal professionals believe career progression is unlikely, contributing to a potential talent exodus—61% expect to change jobs within 12 months.
Critical staffing shortages persist, with 39% of firms struggling to recruit senior associates and 25% facing difficulties finding qualified lawyers. Despite these challenges, 78% of legal firms plan expansion in 2025.
Beyond salary, legal professionals increasingly value flexibility as a baseline expectation, with work-life balance and career development becoming key retention factors.
[Read the full analysis and salary breakdown →]
Source: Hays Salary Guide FY25/26 | Legal Market Analysis
