Slaughter and May has increased its junior lawyer salary rates, becoming the first magic circle firm to announce new rates for the coming financial year.

The increases, which will take effect from 1 May, include raised rates for newly-qualified lawyers, which have grown by 3.2% to £65,000.

Lawyers with one year and two years' post qualification experience (PQE) are respectively gaining increases of 0.7% to £70,000 and 1.3% to 79,000.

Meanwhile, those with three years' PQE will see their salaries increase by 1.7% from £87,500 to £89,000.

Slaughters executive partner Richard Clark (pictured) said: "The firm has seen an encouraging level of activity so far this year and we remain cautiously optimistic about the prospects for the continuing recovery of the wider economy."

Slaughters previously used to conduct two salary reviews a year, but abandoned this in the 2012-13 financial year in favour of just one review annually.

Last November magic circle peer Allen & Overy (A&O) upped associate pay rates at the financial half-year mark, increasing salaries for junior lawyers across the board.

Associates with two year's PQE and three years' PQE gained the largest salary increases, with the former taking home £78,500, up 5.4% from £74,500. Those with three years' experience saw salaries jump by £3,000 to £89,000.

At the same time A&O's newly-qualified lawyers had their pay increased by £1,000 to £64,000, while first-year PQE lawyers were set to take home £69,500, marking a similar increase.

Junior lawyer pay at Slaughter and May (2012-13 in brackets):

Newly qualified: £65,000 (£63,000)

One year PQE: £70,000 (£69,500)
Two year PQE: £79,000 (£78,000)
Three year PQE: £89,000 (£87,500)

Trainee year 1: £39,500 (£39,000)
Trainee year 2: £45,000 (£44,000)