Slaughter and May is increasing London associate salaries by up to 10%, alongside the introduction of a wide-ranging series of reforms of pay and benefits at the firm.

The changes, which come after an extensive staff consultation in collaboration with Willis Towers Watson, will see Slaughters move away from performance-based pay, a decision that senior partner Steve Cooke says "clearly differentiates" the firm from its competitors.

The magic circle firm currently operates a lockstep pay structure for associates, with a small element of performance grading, but associate pay will now "mirror the flat lockstep structure of the firm's partnership", according to a statement.

Current associate pay levels will be increased from 1 January 2017, in a one-off move outside of Slaughters' regular annual pay review.

Newly qualified (NQ) lawyers will see pay rise by 9% to £78,000, while lawyers with one year's post-qualification experience (PQE) will see the biggest rise, with a 10% hike to £87,000.

Lawyers with two years' PQE will see their pay increase by 9% to £98,500, while those with three years' PQE will see their salaries rise by 8% from £99,750 to £108,000.

Pay for first-year and second-year trainees will remain unchanged at £43,000 and £48,000 respectively.

Slaughters has reviewed associate pay annually in May since 2012, when it dropped its longstanding biannual pay review system. The firm confirmed that it has no plans to return to the biannual system and that its annual review will take place as usual in May 2017.

All of its employees are also set to receive a bonus on 31 December. The standard associate bonus ranges from 9% to 16%, depending on PQE, in line with last year. Trainees, business services staff, professional support lawyers, secretaries and paralegals will receive a bonus of 3%.

The pay increases are specific to London, with the firm set to make a separate announcement regarding changes to Asia associate pay in due course.

As part of the consultation, Slaughters has also introduced a raft of new reforms including the introduction of 30 days' annual paid holiday from 1 January for all of its employees, including partners.

In addition, the firm has brought in a four-week paid sabbatical for associates when they reach three years' PQE, while all associates will also now have the opportunity to work one day a week from home.

The consultation included an employee survey, which garnered an 84% response rate. Ninety-five percent of associates and trainees and 86% of support staff said the firm's 'no billable hours targets' culture was a key attraction to working at the firm.

Other benefits the firm will introduce during the course of 2017 include an onsite doctor, dental insurance on a self-pay basis, matching pension contributions for all employees under 25 and a qualification leave loan for trainees.

Senior partner Cooke said: "The first thing I would say is that we have listened. Our staff have expressed their views very clearly. There is a strong collective belief in our 'no billable hours targets' culture and indeed, 95% of associates believe that billable hours targets would have a detrimental effect on the firm's culture. This clearly differentiates us from our competitors – in a positive way.

"Further, the overwhelming message from our associates and trainees is that they do not want to see pay differentiated on the basis of performance. We will therefore continue to remunerate in a less differentiated and more egalitarian way than many of our competitors."