London trainee pay gap widens as top US firms hit £75k

London trainee salaries are reaching new heights, with a group of elite US law firms now paying junior recruits £75,000 a year before they even qualify.

Milbank, Kirkland, McDermott and Sullivan & Cromwell now offer salaries of £70,000 for first-year trainees and £75,000 for second-years in London.

The figures underline the growing divide between US firms and their Magic Circle rivals in the competition for junior legal talent. Magic Circle trainees earn £56,000 in their first year and £61,000 in their second, meaning those joining the four US firms can earn £14,000 more annually.

The US premium

Over the course of a standard two-year training contract, a trainee at one of the top paying firms would earn £145,000, compared with £117,000 at a Magic Circle firm, a £28,000 difference before qualification.

Tax aside, that difference could go a long way in London. It would cover a year's rent on a Zone 1 studio flat costing £2,200 a month, buy more than 3,700 pints at £7.50 each or pay for 280 dinners out at £100 a meal.

For those thinking about getting on the property ladder, it could provide a substantial flat deposit. Alternatively, it could fund four rather luxurious holidays at £7,000 each.

A changing market

The latest salary figures come as the traditional junior lawyer model faces growing scrutiny.

Some of London's largest law firms have begun reducing their trainee recruitment numbers. Linklaters has cut its advertised annual training contract places from 100 to 60, while Freshfields and Addleshaw Goddard have also reduced their intakes.

The changes come amid growing debate over how artificial intelligence could reshape the work traditionally carried out by trainees and junior associates.

For now, however, the latest salary figures suggest that some of the largest US firms remain willing to pay a substantial premium to recruit junior lawyers in London.