After having decided to freeze pay earlier this year, Allen & Overy (A&O) has decided to up trainee, junior and mid-associate level pay after reviewing the salary market at half year.
First and second seat trainees will now receive £1,000 more, taking them to £40,000 and £45,000 respectively, while newly qualified associates will see pay rise from £64,000 to £66,500.
Those with post qualification experience (PQE) also saw pay increase with first year’s increasing from £69,500 to £72,500 and two years’ PQE seeing salary packets go from £78,500 to £82,500, while three-year PQEs will earn £93,500, up from £89,000.
The adjustments will come into effect on 1 November, but will backdated to the beginning of the financial year on 1 May 2014. The pay increases come after the firm decided to hold pay levels, except for senior associates which saw a £5,000 rise to £105,000, earlier this year while the rest of the Magic Circle made increases.
The firm said in a statement: ‘It has been our practice to review the salary market at the half year and decide whether any action is necessary to ensure our total reward proposition of salary and bonus, remains competitive at all levels.
‘Our decision to adjust compensation levels at this point is also a reflection of the strength of our performance within the London office as we have made a positive start in the year to date. It is the hard work and effort of all of our people that underpins our success as a firm, and this is recognition of the contribution our trainees and associates make to that success.’
Pay was last increased in November 2013, which saw NQ lawyers’ pay upped from £61,500 to £64,000, one-year post-qualified experience (1PQE) associate pay raised to £69,500, 2PQE increased from £74,500 to £78,500, and 3PQE up to £89,000 from £86,000.