Hogan Lovells has implemented a new pay system for its newly qualified (NQ) associates in London, which including bonuses could see junior lawyers take home £117,000.

The Anglo-American firm has increased NQ base pay at its City office by 15% from £78,000 to £90,000.

NQs are also eligible for performance-related bonuses of up to 30%, giving a potential total compensation of up to £117,000, according to the firm.

The changes mean first-year NQs at the firm could take home more than their counterparts at Magic Circle firms Clifford Chance and Freshfields Bruckhaus Deringer, which offer £100,000 including bonuses to their NQs.

Hogan Lovells has also raised its trainee rates from £45,000 to £46,000 for first-year trainees, and from £50,000 to £51,000 for second-year trainees.

A firm spokesperson said in a statement: "We have increased salary bands for our qualified lawyers, effective from May 1, 2019. We currently operate a merit-based pay model with broad salary bands to ensure that we are able to take into account an individual's performance when determining salary within the relevant salary band.

"In addition, our total compensation reward model means that lawyers have the ability to earn bonuses based on the combination of their chargeable hours and/or a discretionary bonus for their other contributions."

The new rates came into effect on May 1.

The firm is the latest to raise rates for its junior lawyers.