Portugal's largest law firm, PLMJ, is set to overhaul its remuneration system in a move that would reduce the merit-based element of the firm's pay.

Partners at PLMJ are currently discussing proposals to abandon the firm's current hybrid payment structure in favour of a purer lockstep that would distribute profits more evenly across the firm.

Under the current system, the firm allocates 50% of its profits according to the performance of each practice area, with the other 50% distributed to partners via lockstep.

If accepted, the new proposals would see 70% of profits distributed via lockstep and 30% according to performance.

The measures were approved in principle at a partners' meeting in December and face a final vote before June, when the proposals are likely to be accepted.

Partners will also vote on plans to consolidate existing practice groupings into fewer, larger teams.

Commenting on the proposals, PLMJ managing partner Fernando Campos Ferreira said: "What we have now is very much a customised system. What we will have in the future is what you see in most of the UK firms."

The changes come with a number of local firms battling to attract younger lawyers in order to address issues of succession.