The NZ Legal Salary Paradox: Why 84% of NZ Law Firms Are Planning Pay Rises That Still Won’t Keep Lawyers Happy

Hays NZ Law Salary Guide FY25/26

The Hays Salary Guide FY25/26 has some interesting revelations that might surprise you, and they’re particularly relevant for anyone working in or hiring for legal jobs in New Zealand, which is doing well in terms of salary growth, according to the Guide.

The legal sector has claimed the fourth spot for year-on-year salary increases with a robust 7.8 percent growth. That’s significantly ahead of most other industries and shows the legal market is still very much a candidate-driven space.

What’s equally encouraging is that 61 percent of legal professionals are actually satisfied with their current compensation—a figure that’s notably higher than many other sectors. Some lawyers even consider themselves overpaid, which is refreshing to hear in an industry often associated with burnout and dissatisfaction.

The Reality Check

However 84 perent of employers across all sectors plan salary increases, the average bump of 3.7 percent falls well short of the 6 percent employees are hoping for. In the legal sector specifically, this disconnect is even more pronounced—39 percent of legal professionals want salary increases exceeding 5 percent, but only 19 percent of legal employers plan to deliver on this.

This isn’t just about money; it’s about talent retention and market competitiveness.

Career Progression Is The Bigger Problem

Here’s where things get concerning for law firm leaders. Nearly 31 percent of lawyers believe they’re unlikely to progress in their careers, and 45 percent see only minor to moderate advancement opportunities. When you combine this with salary dissatisfaction, you’ve got a perfect storm for talent flight.

The stats back this up with 33 percent of skilled professionals changed jobs last year, and a whopping 61 percent expect to leave their current roles within the next 12 months.

What Lawyers Really Want

The flexibility conversation has evolved dramatically. It’s no longer a “nice-to-have” perk—nearly 6 in 10 employees consider flexibility their most valued benefit, surpassing traditional perks. Legal professionals specifically prioritize.

  • Additional annual leave and family benefits
  • Strong work environment and employer brand reputation
  • Flexible working arrangements and work-from-home options

Interestingly, while firms offer these benefits, 70% of legal staff still work onsite at least four days per week, suggesting that in-person collaboration remains valued in legal practice.


Legal RoleSalary Range (NZD)Key Notes
Graduate Lawyer$41,000 – $45,000Entry point varies by firm size
Lawyer (2-3 PAE)$95,000 – $115,000Significant jump from graduate level
Associate$125,000 – $135,000Mid-career benchmark
Senior Associate$160,000 – $175,000Leadership track
Special Counsel$195,000 – $215,000Senior expertise level
Partner$240,000 – $270,000+Varies significantly by firm

Note: Corporate lawyers can earn up to $169,000, while associate attorneys average $114,882. Top-tier roles may exceed $200,000+

Finding Talent is Getting Harder

If you’re struggling to fill positions, you’re not alone. The legal sector is facing significant staffing pressures, the survey show.

  • 39 percent of firms struggle to recruit senior associates
  • 25 percent report difficulties finding qualified lawyers
  • 21 percent face challenges recruiting associates

Despite these challenges, 78 percent of legal firms plan to expand in 2025, with lawyers leading hiring priorities at 41percent, followed by associates at 36 percent.

Making Sense of the Numbers

For lawyers, the market is still in your favour, particularly for those with 3+ years PQE.

  • Flexibility and career progression opportunities are your negotiating leverage and when evaluating non-monetary benefits don’t underestimaste whaty they are worth for you.

If you’re a law firm leader, the survey indicates that salary increases alone won’t solve your retention problems, but rather focus on career pathways and highlight flexible work policies and the firm culture.

  • Consider performance-based compensation structures to bridge the expectation gap and invest in mentorship and internal mobility programs.

For legal recruiters, there needs to be an emphasis on work-life balance and career development opportunities, not just salary

  • Build strong employer brands that showcase workplace culture and streamline your recruitment processes. Remember that good candidates have options

The Bottom Line

The legal sector is performing well financially, but the industry faces a talent retention challenge that goes beyond what lawyers get paid. The firms that will thrive in 2025 are those that recognize the shift toward valuing career progression, flexibility, and workplace culture alongside competitive salaries.

The Hays Guide data suggests we’re in a transitional period where traditional hiring approaches need updating. Smart firms are already adapting their talent strategies to meet the evolving expectations of legal professionals—and those that don’t risk losing their best people to competitors who do.

The legal recruitment situation is competitive, but understanding these trends gives you the insight needed to make strategic decisions about your career or hiring strategy. Use this data wisely, and remember—in today’s market, it’s not just about what you pay, but how you treat and develop your people that makes the real difference.

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