Ashurst has increased its pay for newly qualified (NQ) lawyers by £2,000 while freezing rates for lawyers with 1-3 years' post qualification experience (PQE).

The new rates see first and second year trainees receive £1,000 more than last year, taking home £39,000 and £44,000 respectively, while NQs' salaries have grown from £61,000 to £63,000.

Meanwhile salaries for lawyers with 1-3 years' PQE have been held at the same rates as last year, when the firm announced increases of £3,000 for two years' PQE and £5,000 for three years PQE. As a result. associate pay will remain at £69,000 for one year's PQE, £77,000 for two years' PQE and £85,000 for three years' PQE.

An Ashurst spokesperson said: "We are fully committed to attracting and retaining the best quality graduates and ensuring that remuneration is competitive, as this year's increases demonstrate."

Last week Shearman & Sterling annoucned it had increased the rate it pays its English-qualified junior associates by up to 6.4% from £78,000 to £83,000. .

At the top end of the junior bracket, lawyers with up to three-and-a-half years post-qualification experience (PQE) can now earn £114,000, a 5.5% increase on last year's £108,000. The pay increases follow a 20% growth in revenue at the firm's London office in 2013.

Ashurst 2014 junior pay bands (2013 in brackets)

First year trainee – £39,000 (£38,000)
Second year trainee – £44,000 (£43,000)
NQ – £63,000 (£61,000)
One year PQE – £69,000
Two years' PQE – £77,000
Three years PQE – £85,000