Allen & Overy has upped salaries across its junior ranks, with fee earners from first seat trainees through to those with three years' post qualification experience (PQE) receiving pay rises of at least 2.5%.

First seat trainees will see their salaries go from £39,000 to £40,000, newly qualified solicitors from £64,000 to £66,500, and those with one year's PQE from £69,500 to £72,500.

The largest rises are reserved for those with two and three years' PQE with both seeing salaries jump by more than 5%. Two-year PQE pay has risen  from £78,500 to £82,500, while three-year PQEs will earn £93,500, up from £89,000.

The adjustments will come into effect on 1 November, but will backdated to the beginning of the financial year on 1 May 2014.

The firm's senior associates, who are eligible for promotion from 4.5 years' PQE onwards, received their pay rise at the financial half-year mark in November, and will now pocket a minimum of £105,000, up from £100,000.

An A&O spokesman said:"As communicated to associates earlier this year, it has been our practice to review the salary market at the half year and decide whether any action is necessary to ensure our total reward proposition of salary and bonus, remains competitive at all levels.

"Our decision to adjust compensation levels at this point is also a reflection of the strength of our performance within the London office as we have made a positive start in the year to date."

Last year, magic circle salaries went up across the board, with Clifford Chance coming in with biggest hikes, upping pay for its junior lawyers by as much as 7.4%.

Though its impossible to make a direct comparison, Freshfields Bruckhaus Deringer came top of the chart with salaries of up to £135,000 for associates in its top band – equivalent to roughly six years' experience.

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