Hannah Collins
September 2025 will be remembered as the month NQ pay went stratospheric. London firms, from Magic Circle giants to ambitious mid-tiers, rushed to announce record-breaking salaries for newly qualified solicitors, some rising as high as £130,000. The aim was clear: attract the best young talent and keep pace with elite US competitors.
But beneath the headlines, another story emerged, one of discontent, compression, and culture shock. The steep NQ rises left many mid-level associates questioning their value, progression, and loyalty to their firms. The industry calls it ‘bunching.’
What Changed in 2025
Over the summer, a wave of announcements reshaped the UK pay market.
- DLA Piper set its London NQ salary at £130,000 (an 18% rise).
- Eversheds Sutherland and Pinsent Masons joined the charge, crossing the £100,000 threshold.
- Shoosmiths acknowledged the challenge of knock-on effects and pay compression.
The pattern was clear – firms sought visibility in an arms race for talent. For graduates and trainees, this was a golden moment. For those already qualified, it was more complicated.
Understanding ‘Bunching’
‘Bunching’, or pay compression, occurs when rapid increases at the junior end flatten the pay scale above it. Suddenly, an NQ might earn £130,000 while a 3 years’ PQE associate earns only £10–15k more.
That narrow gap sends a simple, demoralising message: more experience, responsibility, and client work don’t deliver meaningful financial reward. It’s not just an accounting problem; it’s a cultural one.
The Human Impact: Mid-Level Unrest
Across LinkedIn threads, industry forums, and firm town halls, mid-level lawyers have voiced frustration. They’re billing longer hours, leading deals, and mentoring juniors, yet their pay uplift has barely shifted.
In many cases, associates at 4–5 years’ PQE now earn only marginally more than fresh qualifiers. As one associate put it on Legal Cheek:
“Huge bunching going on. Very small pot of money, they throw it at the NQs and forget the rest.”
This erosion of perceived fairness threatens morale, loyalty, and long-term retention. And with mid-level lawyers being the backbone of client delivery, firms can’t afford complacency.
How Firms Are Responding
Reactions have varied widely across the market:
- Freezes and recalibration
Some firms are pausing further NQ rises or reviewing PQE bands before the next fiscal cycle. - Bonuses and variable pay
Others are expanding bonus pools to ensure higher PQE associates can out-earn juniors through performance. - Career transparency
Firms are clarifying progression criteria and promotion pathways, making career growth more visible. - Retention incentives
Short-term fixes like retention bonuses and secondments are being deployed to ease discontent.
Each approach recognises the same truth: it’s not sustainable to have juniors catching up to seniors without structural change.
Correlation ≠ Causation
The NQ surge is a catalyst, not the sole cause, of mid-level unrest.
Underlying issues include limited career clarity, static pay bands, and slower-than-expected promotions. The 2025 salary war simply made visible what many associates already felt: progression isn’t linear, and loyalty doesn’t always pay.
Strategic Lessons for Law Firms
- Model the whole ladder. Before increasing NQ pay, simulate the long-term effects across PQE levels.
2. Blend base and bonus. A transparent bonus system helps reward contribution without breaking the salary scale.
3. Communicate clearly. Associates understand commercial realities, but they need context and transparency.
4. Invest in career development. Retention isn’t just about money. Mentorship, secondments, and promotion clarity matter just as much.
5. Protect profitability through leverage. Rethink staffing ratios and billing structures to offset rising salary costs.
For Mid-Level Associates
If you’re a mid-level associate feeling left behind, don’t panic but do act:
- Ask questions. Request transparency on pay bands and review cycles.
- Document your impact. Quantify your client wins, deals, and leadership.
- Explore options. Sometimes the best leverage is an informed conversation backed by market data.
What Happens Next?
Pay compression is here to stay, at least for now. Firms that focus only on winning NQ headlines risk hollowing out their middle. Over time, we’ll likely see a split between firms competing on salary and those competing on culture, flexibility, and growth.
Contact Us
To discuss your career opportunities and challenges in the UK, contact Hannah Collins. Email: hannah.collins@wearebuchanan.com
