Salaries vary considerably across the UK. A trainee solicitor in Manchester could potentially earn up to PS80,000 while an NQ at a London firm will likely take home roughly twice that amount.
Trainee salaries often depend on the firm you’re working for – particularly within the so-called ‘Magic Circle’ firms such as Allen & Overy, Clifford Chance, Freshfields and Linklaters.
Location
Lawyers are among the highest-paid professionals in the UK, but how much they earn depends on a variety of factors. Their salary often reflects factors like location, practice area expertise and firm type. Some lawyers even receive bonuses in addition to their base salaries to boost earnings potential further.
Location is one of the primary determinants of lawyer salaries; newly qualified solicitors in London may make over PS100,000 annually while those working outside of the capital usually take home around PS60,000 per annum. Furthermore, law firms pay various salaries to newly qualified solicitors.
There are numerous law firms to choose from in the UK, but among those offering higher salaries are Magic Circle firms in London and US-based law firms like Freshfields & Linklaters. Their NQ salaries typically range between PS130,000 – PS107,500.
However, even within these elite firms there can be significant variations in pay. A first-year trainee at White & Case can expect to make around PS52,000; at Shearman and Sterling they should expect around PS60,000.
Other elements that influence a lawyer’s salary include their area of law practiced and client base size; for instance, those working on high-profile business cases tend to earn more than those who specialize in personal injury or family law. Finally, billable hours completed are another key factor when calculating compensation.
Not to be forgotten is that the average salary for lawyers varies based on practice area and firm. Magic Circle and City firms offering international corporate finance and tax work typically offer higher earnings; however there remains a disparity in salaries between partners and other senior associates within these elite firms.
However, lawyers specializing in more personal areas, such as family or personal injury law are less likely to earn six-figure salaries, especially if they work for regional or high street firms. That doesn’t mean these lawyers don’t earn well – just that their earnings differ slightly compared to colleagues at larger law firms.
Specialisation
Similar to doctors, lawyers often specialize. Doing so allows them to gain a greater understanding of their cases and the needs of their clients, leading them to higher success rates as they build experience and become known within a particular area of law. Furthermore, specialisation can open up earning potential when building their reputation within that niche field of law.
While there is no set rule regarding when or how you should choose a legal specialty, it is generally wise to do so once you have enough knowledge in the legal field to take full advantage of any opportunities that arise. You might consider commercial law, family law, personal injury and immigration law among many other specializations available to you.
Your area of law practice will have an enormous effect on your salary. For instance, commercial lawyers often receive much higher pay compared to lawyers who do not specialize in this niche field, since it is seen by employers as highly profitable specialization.
Location can have an enormous effect on earnings. Working in London could bring higher income due to law firms like Allen & Overy, Clifford Chance, Freshfields Bruckhaus Deringer Linklaters and Slaughter and May offering some of the highest salaries available in UK law practice.
US firms such as Shearman & Sterling and Kirkland & Ellis also pay high salaries to newly qualified solicitors, as they can offer international work opportunities which are extremely lucrative.
The Law Society recommends that trainee solicitors should receive at minimum PS23,703 in London and PS21,024 elsewhere across the UK as an annual salary for trainee solicitors in England & Wales, though this figure can increase significantly depending on your firm of employment; trainee solicitors at large city firms such as Eversheds Sutherland may receive salaries up to PS40,000 before any bonus payments are added; this figure also increases with each year of post-qualification experience, also known as PQE.
Firms
As a trainee or newly qualified solicitor, your salary can depend on where you work. Starting salaries typically begin around the National Minimum Wage – currently PS18,000 outside London and PS22,000 inside; and each year of your apprenticeship brings with it additional payments. As your experience increases, your pay band will move closer to that of university-route solicitors at NQ level. Once fully qualified as a lawyer, expect your salary to increase exponentially year after year; and as you specialize further, your earnings may also go up accordingly – top lawyers in their field can potentially earn upwards of PS100,000. However, remember that these figures don’t take into account all the billable hours lawyers must complete annually.
Consider whether or not you prefer working for a large or smaller law firm when choosing your employment options. Mid-tier UK firms saw faster increases in average lawyer salaries in 2019-20 than larger rivals according to auditor analysis of LLP accounts, and top firms like Linklaters, Allen & Overy, Freshfields Bruckhaus Deringer Clifford Chance Slaughter and May all offer attractive salary packages for their lawyers.
Lawyer salaries depend on their area of specialty and type of law firm they work for. Commercial and corporate lawyers tend to earn the highest salary, while those working in family, personal injury and criminal law tend to make less on average.
Salaries in the US tend to be higher than in the UK; however, British lawyers are still fairly well paid despite working long hours without much vacation. Many individuals choose becoming lawyers because they enjoy the intellectual challenge and sense of accomplishment associated with solving complex legal problems.
As a rule, larger firms typically pay higher salaries than their smaller counterparts. For in-house lawyers at large companies, minimum salaries range between PS62,000 to over PS100,000. Top lawyers may earn even more; particularly those deemed senior associates or partners.
Bonuses
Lawyers can often command incredibly lucrative salaries, with bonuses on top of their base salaries varying according to firm and specialisation. Associates may receive bonuses for billing certain hours per month or year; in other firms, bonuses could also be awarded according to value of new business brought in. While this type of bonus system can be rewarding for associates, law firms should create clear guidelines as to how bonuses will be awarded as over time, high billable hour expectations can lead to burnout and high turnover rates among lawyers.
Location plays a key role in determining a lawyer’s salary. London-based attorneys tend to receive higher pay than those from other locations, though this may not always be true as many London law firms like Eversheds Sutherland also maintain offices outside London and pay their associates accordingly.
Notably, a lawyer’s salary can also depend on their duration as a lawyer; typically speaking, the more years of post-qualification experience a lawyer has post qualification, the higher their salary will be – this term is known as PQE or Post Qualified Experience.
Not to be underestimated is the fact that legal profession is notoriously competitive at every level – from training contract applications and equity partner positions, all the way through to senior associate and equity partner recruitment processes – creating significant pressure for young lawyers working at top-tier Magic Circle or City firms.
It has also led to an increase in performance-based bonus schemes among law firms. Some firms have implemented bonus structures that reward associates who exceed certain billable hours thresholds; other have increased bonus payouts to attract top talent. Bonuses can be an effective tool for motivating employees and improving morale; however, they must be carefully calibrated in order to avoid creating an unhealthy work culture; offering associates bonuses for exceeding billable hours thresholds could backfire as many young professionals place greater importance on work/life balance than ever.