Allen & Overy (A&O) has confirmed salary increases for London trainees and newly qualified (NQ) lawyers, with rates rising by roughly 2%.

The firm's NQ rate has risen by 2.5% to £83,000, up from £81,000, with first- and second-year trainee rates climbing by just over 2%.

First-year trainee pay rises from £44,000 to £45,000, with second-year pay increasing from £49,000 to £50,000. The firm will not confirm salaries for more senior lawyers or bonus rates.

Separately, A&O has also announced its trainee retention rates for September, keeping on 37 of the 46 trainees – equating to 80%.

Claire Wright, A&O's graduate recruitment partner and training principal, said: "This is a good result and one which demonstrates the consistently high quality of the trainees here at A&O.  We are fortunate to have such a strong pipeline of talented young lawyers."

News of A&O's salary increase comes as UK firms have been slow to confirm 2018 rates.

Clifford Chance last week announced that maximum pay for its NQs, including salary and the highest performance-related bonus available, has risen to £91,000 – up by more than 4% from £87,300 last year.

The firm has also raised trainee pay for both years by 4%, with first-year salaries up from £44,800 to £46,600 and second-year pay hiked from £50,500 to reach £52,500.

Freshfields meanwhile has held NQ pay at £85,000 but increased first-year trainee pay to £45,000, a 5% increase on last year's salary of £43,000. Second-year trainees  will take home £51,000, up more than 6% from £48,000.

In December, Slaughters confirmed its trainee pay rates for this year, with first-year trainees earning £44,000 and second-years taking home £49,000. The firm has yet to confirm associate salaries.

Linklaters is still to confirm trainee or associate rates.