Clifford Chance (CC) has announced pay rises for its City associates, with salary bands for junior lawyers increased by up to 4%.

The new salaries, which are backdated to 1 May, include pay rises for lawyers with between one and three years' post qualification experience (PQE), with the 2PQE pay band seeing the biggest increase, rising almost 4% from £72,250 to £75,000.

The first-year pay band has been increased by £500 to £68,500, with the third-year band up £1,000 to £85,500. Meanwhile, first and second-year trainee rates have been held static at £38,000 and £43,000 respectively, with newly-qualified (NQ) rates remaining at £61,500.

CC also confirmed that it will be paying out bonuses this year. Including bonuses, the maximum earnings will range from £73,800 for NQs to £111,150 for 3PQE lawyers.

CC London managing partner David Bickerton (pictured) said: "The London office has been busy, our business has grown and our associates deserve to be well rewarded."

CC's new salaries place it broadly in line with its magic circle competitors. Among the group, Freshfields Bruckhaus Deringer pays the best rates for 3PQE lawyers, with the firm's associates at that level taking home £88,000.

Magic circle pay comparison

Firm                    NQ            1PQE           2PQE              3PQE         

CC                    £61,500     £68,500      £75,000        £85,500
Allen & Overy  £61,000     £68,000      £74,000         £85,000
Freshfields     £61,500     £69,500      £77,000         £88,000
Linklaters        £61,500     £68,000      £73,000         £85,000
Slaughters      £61,500     £69,000      £76,000         £86,000