For the last few years, London’s most eye-catching pay moves have been at NQ level. Magic Circle NQ base pay has settled at £150k with leading international firms bunching closely behind, and elite US firms still well out in front.
These headlines have created the impression salaries are rising evenly across the board — but that is not what’s happening inside many firms.
What’s really being squeezed…
In some national firms based in London, there is now a £20k–£25k gap between NQ and 7–8 PQE base salaries – a worrying compression that would have been unusual a few years ago. These firms have lifted NQ pay to stay competitive while leaving senior associate bands comparatively flatter. Specific recent moves at national firms, such as NQ salaries rising into six figures, illustrate how the focus has shifted to optics at entry level.
How some firms are responding: some are freezing NQ pay to re-rate senior bands and reduce “bunching”. A few have explicitly diverted extra budget this year towards experienced associates and bonus pools to tackle the imbalance.
Why this is happening…
- Optics and competition at entry: Big NQ numbers help with visibility, lateral attraction, and employer branding.
- Budget constraints and uneven demand: Revenue growth and deal flow have been patchier since 2023. Firms can’t re-price every rung annually, so senior increments lag whilst NQs get a major step-change.
- Bonuses as the pressure valve: Discretionary bonuses are being used to recognise performance without permanently resetting the whole pay grid, which further dampens base-salary progression for mid and senior level lawyers.
The consequences across the market
- Expectation mismatch: Candidates see NQ headlines and expect straight-line growth through the bands. Offers that land exactly “on market” can feel disappointing compared with estimates they were told early on, particularly by some recruiters who are inflating pay to increase initial interest.
- Internal frustration: Where a seasoned 7–8 PQE is only £20–£25k ahead of an NQ, morale and retention risk rise — particularly in practices with high pressure and responsibility.
- Flight risk to US and global platforms: The biggest pay steps remain available at elite US and some top international firms, and sustained compression increases the temptation to move.
What recruiters should be doing (and why it matters)
- Benchmark with hard data and knowledge. Use current and verifiable salary ranges. Don’t round up to “win” interest.
- Explain the ladder, not just the first rung. Set expectations with banded realities: NQ ≠ automatic linear uplift.
- Be explicit about bonuses and hours. Total compensation at US and top international firms often relies on longer hours and more variable bonuses. Candidates should compare base + bonus + lifestyle holistically.
- Name the uncertainty. Where data is thin — especially for mid- to senior-levels — be transparent about that. Give conservative ranges and explain the variables (practice area, utilisation, team performance, etc.).
Bottom line
Transparency and realism matter.
Clear, data-driven conversations about pay prevent disappointment later and preserve trust when offers align with what firms are actually paying — not with the inflated numbers used to attract attention.
