Freshfields Bruckhaus Deringer has held associate and trainee pay rates at last year's levels following a challenging year for the firm.

Last year Freshfields increased base pay for newly qualified (NQ) lawyers by 26% to £85,000, rising to £97,000 for top performers.

However, the firm posted disappointing financial results for 2016-17 after what co-managing partner Stephan Eilers described as a "challenging" year, with revenue flat and net profit down 1% to £612m.

Eilers' fellow co-managing partner Chris Pugh subsequently stepped down after little more than 18 months in the role, with one former partner describing him as the "fall guy" for the results.

After a review of its pay rates, the firm has now opted to hold associate salary bands at last year's levels, with first-year trainees continuing to receive £43,000, and second-years taking home £48,000

London managing partner Julian Long said: "After the major revamp and increases in 2016, we have continued to review our competitive position, which, in terms of total compensation, remains strong in the market. We will continue to review and update, taking account of the market, in order to make sure our approach properly rewards our people for the work they do and the high standards they consistently achieve."

Freshfields operates a career milestone model as opposed to a traditional associate lockstep system, which allows greater flexibility for lawyers to have their pay increased based on merit.

Lawyers with one year post-qualification experience (PQE) are paid in the same band as NQs, while those with two and three years' PQE are paid between £105,000 and £115,000.

However, those in the NQ and one year PQE band are not eligible for a bonus, while those in the next band up can receive a bonus of up to 20% of their salary.

Earlier this summer Slaughter and May also opted against increasing London associate pay for 2017-18, after significantly hiking salaries at the start of the year. Slaughters NQs now receive £78,000, while lawyers with one year PQE are paid £87,000.

Linklaters increased pay for NQs lawyers by £1,000 this summer, but would not comment on whether it had made changes for more experienced associates. NQs are now set to receive around £90,000 when basic salary and performance bonus are combined.

This, June RollonFriday reported that Clifford Chance handed out an inflation-matching pay hike of 2.7%, although the firm declined to comment. In 2015-16 the firm's NQs received £85,000.

Allen & Overy also declined to comment on its 2017-18 associate pay rates. Last year the firm increased NQ pay to £78,500.