International firm increases London NQ base pay by 2.7%, following a 12.5% rise the previous year
Hogan Lovells has raised salaries for its newly qualified (NQ) solicitors in London to £140,000, marking a further escalation in the ongoing salary war among elite international law firms.
The 2.7% increase, effective from 1 May 2025, follows last year’s sharp 12.5% rise from £120,000 to £135,000. It brings the firm closer to the pay levels offered by some of its high-paying US rivals in the capital.
A Hogan Lovells spokesperson said the decision followed the firm’s annual UK salary review. “After careful consideration, we have increased salaries for our newly-qualified lawyers in London,” they said. “Base salaries are only one component of lawyer remuneration. We operate a total compensation matrix that includes a competitive bonus scheme, taking into account both chargeable work and other contributions to the firm and our values.”
The move underscores how intensely competitive the legal recruitment market has become in London, with firms racing to attract and retain top junior talent.
Embed from Getty ImagesHogan Lovells’ latest rise keeps it competitive but still lags behind the most aggressive payers. US firm Goodwin Procter made headlines last year by increasing its NQ salaries from £160,000 to £175,000, while Gibson Dunn currently leads the field, paying its newly qualified solicitors a staggering £180,000 annually.
Meanwhile, Slaughter and May, the most conservative of the UK’s Magic Circle firms, recently decided to hold its NQ salary at £150,000 during its spring pay review – a move seen as cautious amidst broader inflationary pressures and global economic uncertainty.
The London legal market has become a battleground for young legal talent, with firms under pressure to match or beat their peers not just on pay, but also on training, culture and long-term prospects. Many general counsel and legal commentators, however, have voiced concern that the escalating NQ pay packages are distorting the legal job market, particularly affecting retention and pay fairness in other areas of the profession, such as in-house legal teams and regional law firms.
Nevertheless, Hogan Lovells’ pay rise signals its intention to stay firmly in the game. The firm, which operates in more than 45 offices worldwide, is known for blending strong corporate and disputes practices with a balanced transatlantic structure.
One associate at the firm, speaking anonymously, said the rise was “welcome and expected” given the recent market movements, but added: “It’s not just about the headline salary. People are looking for sensible hours, hybrid working, good leadership and a path to progression. That’s the real battleground now.”
The firm’s structured bonus scheme, which includes recognition for work that reflects its values in addition to billable hours, is also seen internally as a positive differentiator.
For now, the salary race shows no sign of slowing. While £140,000 may appear generous on paper, firms know that without matching cultural expectations and career support, cash alone won’t keep junior lawyers onside in the long term.
