A raft of firms confirmed their associate salary rises this week with the gap between City firms and some US rivals narrowing.

Freshfields Bruckhaus Deringer and Herbert Smith both increased rates by more than 15% to match the rest of the magic circle, while Shearman & Sterling, a benchmark 'mid-Atlantic-rate' firm, increased by 4%.

The moves mean that, excluding bonuses, there is now £10,000 separating newly-qualified salaries at Shearman and those at the UK's top firms.

Herbert Smith salaries have risen by around 16%, with newly-qualifieds going from £55,000 to £64,000, while lawyers with one year's experience rose from £59,000 to £69,000. Average rates for lawyers with two and three years' post-qualification experience (PQE) jump to £81,000 and £90,000 respectively.

The increases are marginally behind Freshfields, where the newly-qualified salary has risen by 18% to £65,000. This matches Allen & Overy (A&O) and puts the firm marginally ahead of Linklaters (£64,000) and Clifford Chance (£63,500).

At one year PQE, Freshfields' associates can expect to get £71,500, up from £60,000, while two-year PQE pay has risen to £84,000 from £70,000.

Shearman, meanwhile, has taken its City newly-qualified rate from £72,000 to £75,000 with a corresponding 4% rise applying to rates for all associates up to six years' PQE. However, last year Shearman hiked its London salaries by 20%.

White & Case, which also pays mid-Atlantic rates set between New York and London levels, is expected to decide its new salary details later this week, while Weil Gotshal & Manges sets its rates in the summer.

Shearman London managing partner Kenneth MacRitchie said: "We wish to sustain the performance-led culture here by offering not only highly competitive base salaries but also potentially market-leading bonuses – and hence total compensation – to those associates who make a strong contribution."

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