Shearman & Sterling has become the latest firm to hike its U.K. salary bands, increasing pay for its newly qualified (NQ) lawyers by 14% to £120,000.

The U.S. firm has also raised rates across its senior associate ranks.

U.K.-based junior associates with between one and three and a half years' experience will take home a maximum of £147,000 – an increase from £137,000 – depending on level.

Mid-level associates who are between three and a half and six and a half years' post-qualification experience (PQE) will take home between £148,000 and £174,000 depending on their level – an increase from between £138,000 and £164,000 last year.

Meanwhile senior associates with more than six and a half years' experience will now take home £175,000, up from £165,000 last year.

Shearman's London head Matthew Readings said in a statement: "We are pleased to be able to offer our associates an increased payscale across the board. This is part of our ongoing commitment as a firm to being an employer of choice and attracting and retaining the best talent."

The U.S. firm is the latest to announce its payscale in the U.K. It has matched the NQ starting salary announced earlier this year by Ropes & Gray, which kicked off the associate pay war.

The two firms' NQ rate outstrips that of Magic Circle firm Freshfields Bruckhaus Deringer, which raised its rate to £100,000 earlier this month.

With the hike, Freshfields associates are the best-paid new starters within the Magic Circle.

In August last year, Clifford Chance uplifted its NQ pay to £91,000 while in December, Slaughter and May matched rivals Allen & Overy and Linklaters, paying new starters £83,000.