UK lawyers are among the highest-paid professionals, but this lucrative career comes with its own set of challenges. Most notably, it can be highly competitive at all levels; training contract applications often prove fiercely contested while senior associates battle it out to’make partner’.
The UK’s biggest law firms – commonly referred to as “Magic Circle” – can pay newly qualified lawyers up to PS100,000. High-earning equity partners may make more.
High-paying firms
In the UK, salaries vary greatly depending on firm type and location. While London salaries often stand out from regional areas’ wages, legal specialization can have an effect on salary – for instance a lawyer working on commercial/corporate law may earn more than someone who practices immigration/family law.
Trainee solicitors in London receive at minimum PS23,703 annually; outside the city this figure drops to PS21,024 per annum and increases as they complete their qualification process. Some firms (notably London-based Magic Circle firms) pay above this recommended figure.
UK lawyers typically work long hours and may travel overseas to meet with clients, meeting targets set by supervisors while meeting annual bonuses set by them. Salaries can also be increased thanks to private health insurance, subsidised gym membership and childcare benefits that boost salaries; equity partners may earn over PS300,000.
Regional heavyweights
Law remains one of the highest-paid professions in the UK despite an uncertain economic climate, earning up to double what other industries do according to Reed. Salaries depend heavily on location, practice area, firm size and bonus opportunities for attorneys specializing in litigation or tax law.
London offers some of the highest paying legal jobs, with newly qualified solicitors at top City firms earning PS100,000. This figure reflects a bidding war for junior associates among magic circle and top-tier City firms as well as competition from US law firms such as Kirkland & Ellis and Latham & Watkins for talent.
Outside the capital, newly qualified solicitors typically make around PS30,000 per annum, according to research by The Lawyer which also compiles trainee and newly-qualified solicitor salaries across UK firms. Salaries in Scotland and mid-tier City firms are on the rise rapidly as these can compete for junior associates with Magic Circle firms.
Equity partner
Top lawyers often command staggering salaries. A junior partner at a Magic Circle firm may command as much as PS250,000 per year in compensation; these figures depend on several factors including firm size and structure, number of equity partners and volume of work completed.
However, it’s important to remember that a lawyer’s earnings do not always represent their take-home pay. Being an equity partner brings many responsibilities; repayment of partnership loans, taxes and contributions to pension funds all take a toll on one’s take-home pay.
Profitability in law firms also depends upon demand for their legal services. When economies remain stable, demand tends to rise and equity partners can enjoy higher compensation; in more volatile economies however, demand may decrease leading to decreased pay.
Working hours
Working as a lawyer in the UK can be one of the most rewarding careers available, yet also be extremely demanding due to highly competitive salaries. Many firms will offer incentives like private health insurance, gym memberships and subsidised childcare subsidies in order to attract top talent.
As more firms open outside London, the salary disparity between London and other regions widens as more firms move out. But that does not equate to non-London lawyers earning less; those at Magic Circle firms like Allen & Overy, Clifford Chance, Freshfield Bruckhaus Deringer and Slaughter and May typically make over PS100,000.
Newly qualified solicitors at elite US firms will see their pay packets increase to around PS150,000; senior associates could even reach seven figures. Meanwhile, barristers working at non-Magic Circle firms tend to earn around PS54,000 according to Reed; this may be partially explained by working on lower value cases than their London-based peers.