Allen & Overy (A&O) has launched a review of its junior pay structure, bringing in an external company to study market data and benchmark it against its competitors.
The review is expected to cover both base salaries and bonuses and should conclude before August.
A&O currently pays its newly-qualified lawyers £66,500 while one-year PQE wages stand at £73,500. Two-year PQE associates are paid £82,500 while three-year PQEs receive £93,500.
The firm is the only magic circle outfit not to release its salary levels so far. Clifford Chance hiked its salaries by between 3.7 per cent and 5 per cent at each level while Linklaters increased wages but failed to draw level with the rest of the magic circle. Slaughter and May upped its salaries significantly.
Freshfields Bruckhaus Deringer was the only firm not to raise its salaries. It currently operates a merit-based system; whereby top-performing associates can out earn their counterparts at other firms. The minimum salaries are widely level with the rest of the magic circle.