Australia Law firm salary guide and market trends 2023-2024

The 2023 financial year (FY2023) has seen somewhat of a roller coaster, and we publish this year’s guide in a very different market compared to 12 months ago.

At this time, law firms were experiencing unprecedented demand for legal services in transactional practices, resulting in the frenzied heights of associate recruitment locally and internationally in all major legal markets.

Law firms are now monitoring the potential signs of a recession and are being cautious when it comes to increasing headcount and hiring for replacement roles. Interview processes have lengthened, and business cases are put forward to justify hires based on utilisation and pipeline of work.

In terms of salaries, over the last couple of years, law firms have used salary increases as a tool to retain talent across the firm. This year, however, few lawyers are receiving sizeable uplifts.

Looking ahead, it is difficult to predict how the global challenges will affect the demand for legal services in Australia. Lessons have been learned from past slowdowns and while law firm management will continue to take a cautious approach to hiring, an eye on the future and the recovery will remain.