Slaughter and May has cut back the bonuses it pays to its fee earners, trainees and staff, with trainee bonuses now down to 2.5% from 8% two years ago.

The firm's associates will receive a 5% bonus for 2012, down from the 8% paid out last year, while trainees and support staff will receive a 2.5% payout.

First and second-year trainees were handed 4% and 6% bonuses respectively in 2011, following 8% payouts for all trainees in 2010.