Mishcon de Reya hikes junior lawyer salaries to £110,000
Top City law firm Mishcon de Reya has upped its salaries to £110,000 for its incoming cohort of junior lawyers as the pay war continues to intensify.
The firm, known for its high-profile disputes, has upped its newly-qualified salaries by 10 per cent, effective from September, while also increasing the salaries of first-year trainees to £52,500 and second-year trainees to £57,500, effective from July.
Vanessa Dewhurst, chief people officer at Mishcon de Reya, said: “Our people are at the heart of our growth, our culture and our success and rewarding them fairly, competitively and sustainably is at the core of our strategy.”
“Each year we assess how to provide a remuneration package that aligns with the firm’s growth and to ensure that we continue to attract the brightest talent in the market. These increases, along with the additional bonus scheme, ensure we can competitively reward both the financial contributions and wider contributions that create long-term value for the firm and clients.”
City PM revealed earlier this year that the firm offered its staff a ‘bonus boost’ for working additional hours in order to remain competitive in the legal market, but Mishcon did not change its chargeable hours expectations.
The additional bonuses for associates, managing associates and counsel were in addition to the existing bonus scheme that rewards high performers.
It was introduced to attract and retain talented employees and to reward efforts, including the use of AI, particularly when clients require intensive support.
Pay war over junior lawyers continues
The ongoing pay war in the legal sector began years ago, sparked by a surge in salaries from US firms entering the London market.
Mishcon’s main competitor, US giant Quinn Emanuel, now pays its most junior lawyers £189,000 after raising its salaries in June. Speaking at the time, Quinn Emanuel’s London senior partner Richard East said: “We have increased our salaries across the board to ensure that we remain at or above the top of the market.”
Most magic circle law firms now pay newly qualified lawyers £150,000, with Baker McKenzie and Macfarlanes recently raising their junior salaries to match this benchmark.