Legal sector hits £60bn as top City lawyers pocket millions

Despite a backdrop of global economic uncertainty, the legal profession has solidified its position as a £60bn powerhouse, with top City lawyers bringing home multi-million pound pay packets.

Law firms are experiencing their highest growth in more than 15 years, according to a new report by the Law Society.

The average earnings for law firms surged by over 11 per cent in 2025, a significant jump from the 6.1 per cent growth recorded in 2024.

Profitability wasn’t limited to the Magic Circle firms: 85 per cent of the 121 firms reported year-on-year fee growth, with more than half seeing double-digit increases.

The median number of chargeable hours recorded per fee earner was 807, up from 756 in 2024.

Higher chargeable hours, lower overheads, and reduced lock-up (the days between the bill being issued and the bill being paid) are all contributing to stronger financial performance.

This comes as Latham & Watkins revealed this week that it recorded $8.3bn in revenue, breaking through the $8bn mark for the first time – after just passing the $7bn threshold last year.

Six-figure salaries for juniors

As the legal sector in London continues to boom, so do partners’ salaries and take-home pay.

Over the 2024/2025 financial year, the average profit per equity partner (PEP) at the big firms, including Linklaters, A&O Shearman, Herbert Smith Freehills, and Macfarlanes, ranged from over £1.5m to over £3m.

Partners at some US firms in London are averaging £5m-£6m in take-home pay.

And it is not just at the most senior end; junior lawyers’ salaries have lit up headlines over the last few years.

The newly qualified (NQ), the most junior of lawyers, are earning six-figure salaries at top firms across the City, with some nearing £200,000.

US law firm Latham & Watkins is the highest listed, paying NQ’s £184,600, while the Magic Circle firms have largely coalesced around a base salary of £150,000 for NQs.