Baker & McKenzie is freezing pay for its City associates at last year's levels, with trainees the only London lawyers to see increases in salary rates.

The international firm has opted to hold rates at 2010 levels, meaning newly-qualified (NQ) associates at Bakers' City arm will continue to earn £61,000.

Lawyers with one year's post-qualification experience (PQE) will earn £68,000 and two and three-year PQE rates will remain at  £74,000 and £82,000 respectively. Associates will progress through the pay bands as normal.

First-year trainee rates at the firm have been increased by 1% to £38,000, while second-year trainees will receive £43,000 – up 8% on current levels.

The associate salaries at Bakers are are broadly in line with those paid by the UK's magic circle, all of which pay their NQ associates around £61,000, rising to between £85,000 and £88,000 at 3PQE level.

Bakers' announcement makes it the latest in a number of US firms to confirm this year's salaries for its London lawyers.

Weil Gotshal & Manges last month announced that its NQ rate will increase by 8% from September, with lawyers set to receive £97,000, up from £90,000. Meanwhile, lawyers with one year's PQE will take home £100,000 compared with last year's rate of between £90,000 and £95,950.

Other US firms to announce salary rates in recent months include Shearman & Sterling, which in May upped pay levels in its three-tier merit-based pay system by as much as 15%.

The news came a year after Shearman ditched its associate lockstep across its UK, Asia and Middle East offices in favour of the merit-based system.

Elsewhere, White & Case is moving forward with plans to modify its lockstep model for London associates, with the firm adding a discretionary element to pay for lawyers with more than three years' PQE.

The changes, which the firm is bringing in incrementally over a three-year period from 2009 to 2012, will see associates remain on the current lockstep system up to three years' PQE, at which point they will enter a modified system whereby a substantial part of their pay will be discretionary.

Pay for associates with six and seven years' PQE will be wholly discretionary, while associates with eight years' PQE and beyond will be remunerated according to merit as well as the profitability of their practice area.

A number of firms paying New York rates announced their London salaries earlier this year, including Cleary Gottlieb Steen & Hamilton, which raised City NQ rates by 3.3% to £95,000, while Latham & Watkins froze salary bands with NQ pay remaining at £96,970.

Cleary pays its first-year trainees £40,000, with second-year trainees taking home £45,000.