Herbert Smith Freehills (HSF) has became the latest law firm to raise US associate salaries to new heights, with junior lawyers in New York now set to be paid $190,000 (£143,000).

The firm is boosting its salaries for New York associates, though the increases will not include the additional bonuses that some others have offered in New York and elsewhere.

"We have created an elite offering in New York, and we portray ourselves to clients and the marketplace as elite," said Scott Balber, HSF's New York office managing partner and US head of investigations and financial services litigation.

"As a result, we should be compensating our elite associates in a market-standard way."

HSF launched in the US in 2012 with the hire of a six-partner disputes team from Chadbourne & Parke, and the New York base now has 31 fee earners, with the majority focusing on disputes work. Balber took over the leadership of the office from former Chadbourne litigation head Tom Riley on 1 May this year.

The firm's new US associate base salaries, which take effect as of 1 July, follow the market standard set by Cravath Swaine & Moore earlier this month, which is as follows:

• Class of 2017 – $190,000
• Class of 2016 – $200,000
• Class of 2015 – $220,000
• Class of 2014 – $255,000
• Class of 2013 – $280,000
• Class of 2012 – $305,000
• Class of 2011 – $325,000
• Class of 2010 – $340,000

Nearly 40 Am Law 100 firms have raised salaries so far this month, and magic circle firms Clifford Chance and Freshfields Bruckhaus Deringer also announced that they would be matching the Cravath scale for their US associates late last week.

Balber said HSF wasn't increasing pay in New York in response to its UK rivals, but to keep pace with top firms operating in New York.

"We compete in the New York market with all the best firms, and that's why we need to be compensating people appropriately," Balber said.

As for its associates in the UK, Balber said the firm's London team reevaluates associate compensation separately and independently. "I know they're having those discussions now and all the time," he added.

Last year, HSF opted against pay increases for UK associates after hiking its salary bands and rolling bonuses and base pay together in 2016. The firm's London lawyers receive different total packages depending on performance, with more than 50% of associates defined as 'high performing'.

Total compensation for high-performing newly qualified UK lawyers ranges from £82,000 to £90,000, while high-performing lawyers with one year's post-qualification experience (PQE) receive £87,000-£95,000. Those with two years' PQE receive between £97,000 and £107,000, while high-performing three-year PQE associates receive £112,000-£122,000.

Milbank Tweed Hadley & McCloy kicked off the current mania for salary increases on 4 June, pushing base salaries for first-year associates to $190,000 along with increases for subsequent classes. Cravath upped the ante soon afterward, increasing the scale for mid-level and senior associates by $5,000 and $10,000 respectively.

Unlike other law firms that also will dole out mid-year bonuses akin to those first instituted by Simpson Thacher & Bartlett, HSF will not change its existing bonus structure for associates.

Following announcements that they would increase salaries for their US associates, Kirkland & Ellis and Quinn Emanuel Urquhart & Sullivan also increased pay for their UK associates.