In-house legal salaries are beginning to increase once more, while recruitment activity is also returning to the sector, according to new research.

The survey, conducted by legal recruitment consultancy Robert Walters, states that lawyers working at investment banks are set to to see the most significant pay rises this year, with an average four-year post-qualified (4PQE) lawyer at an investment bank earning £90,000-£140,000 in 2010, as opposed to £85,000-£115,000 in 2009.

However, the pay increases for lawyers in other sectors are likely to be less pronounced. A 4PQE lawyer in a commerce and industry role, for example, will earn £57,000-£78,000 in 2010 as opposed to £58,000-£75,000 in 2009, while a 4PQE lawyer in retail banking and insurance will earn between £65,000-£100,000 in 2010, as opposed to £65,000-£90,000 in 2009.

The survey also claims that static salary levels in some industries will lead to an increase in recruitment activity among in-house legal teams.

Robert Walters managing director Chris Hickey commented: "2009 was a tough year for the legal sector and we do not expect to see a rise in legal in-house salaries for the majority of candidates over the next 12 months. However, the freeze on pay will result in greater movement of staff as legal professionals enter the market looking for new roles to compensate for a lack of bonus and salary freezes during 2009."

In response to the findings, Coca-Cola Europe general counsel Chris Barnard told Legal Week: "I'd anticipate continuing cost pressures at most companies during the year ahead. And if demand pressures result in increases in headcount, I'm sure recruitment would be done without inflating salaries.

"But with these conflicting pressures, there's always the opportunity to meet demand more cost-effectively by using contract lawyers instead of increasing headcount."