Exclusive: Allen & Overy increases associate salaries across the board

Allen & Overy announced pay rises for all associates yesterday, finally catching up with the salaries paid by its Magic Circle counterparts.

The firm failed to increase its rates back in May, when Linklaters announced a modest increase. But mid-year results are about to be published and insiders tell RollOnFriday that they're expected to be pretty healthy. So a small proportion at least of the additional wealth will be going to the troops.

Pay for Newly Qualified lawyers will jump from £61,000 to £64,000, for 1PQEs from £68,500 to £69,500, 2PQEs from £74,500 to £78,500, and for 3PQEs from £86,000 to £89,000. Which of course when calculated as an hourly rate is about the same as a bus driver.

An A&O associate enjoys his pay rise

The Magic Circle's pay now stands as follows, with Freshfields leading the pack.

	NQ	1 PQE	2 PQE	3 PQE
Allen & Overy	64,000	69,500	78,500	89,000
Clifford Chance	63,500	69,500	78,200	87,800
Freshfields	65,000	72,500	80,000	90,000
Linklaters	64,000	69,500	78,250	89,000
Slaughter and May	63,000	69,500	78,000	87,500

Trainees who started at the firm a few weeks ago found out before they joined that their starting salaries would be increased by £1,000.

A spokesman for A&O told RollOnFriday the firm had decided to increase base salaries with effect from 1 November 2013 following a review of the legal salary market the firm "to ensure our total reward proposition remains competitive at all levels and in recognition of the significant contribution our associates make to the success of our business".

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Comments

I'm a 3PQE (Sep 2010), and the salary band for this level is 82k. The figures above refer to Match 2010 qualifiers.

hmmm... and that was the moment when you suddenly realised, that everybody else in your year was being paid more than you?

This remains significantly below pre-Lehman levels.

I began life as a trainee at A&O and left a few years later. The salary did not make up for the life that I had. In particular, I can remember several occasions when I was in tears through lack of sleep, working late into the night. Free food after 7pm in the canteen was good, and the free gym/sauna perk in the bottom of the building was good too. I found colleagues ambitious and keen to out do each other, not people that I would consider friends by any stretch of the imagination. I am now 8 years qualified and working elsewhere for £45,000. The work is as good and as interesting as it was at A&O, I have a lot of responsibility and the hours are good. I would not go back to the City again, even for a high salary. My life is great now.