Top UK law firms shake up bonus schemes to retain top junior lawyers
Starting this summer, City-based Simmons & Simmons will offer junior associates bonuses ranging between 25% and 40% of their base salary for surpassing 1,800 billable hours, as revealed in an internal communication.
In a bid to retain high-performing junior lawyers amid intensifying salary battles, several leading UK law firms are overhauling their bonus structures to reward productivity more generously.
Starting this summer, City-based Simmons & Simmons will offer junior associates bonuses ranging between 25% and 40% of their base salary for surpassing 1,800 billable hours, as revealed in an internal communication. This marks a departure from their prior discretionary model, providing clearer incentives linked to measurable output.
For new associates earning £120,000, this could mean bonuses of £30,000 to £48,000 — with the top tier reserved for those clocking an intense 2,100 billable hours. The firm described the updated structure as a strategic move to recognize and retain top talent.
RPC, another major player, has also enhanced its bonus scheme. Associates meeting the annual benchmark of 1,575 hours — including 1,500 billable hours and 75 hours of approved “investment time” — now qualify for bonuses starting at 5% of salary. The incentive increases by 1% for every additional 25 billable hours, reaching up to a 30% salary bonus, up from a previous cap of 20%.
Managing partner Antony Sassi framed the change as a “modern and inclusive” reward model that aligns with shifting expectations of younger legal professionals.
While these schemes hinge on billable hours — the time directly charged to clients — firms are taking note of the risk of burnout. Shoosmiths, for instance, has capped its bonus structure at 1,900 hours to prevent unhealthy work patterns. Their model starts rewarding associates from 1,485 billable hours and peaks at a 19% bonus.
In contrast, Magic Circle firm Linklaters is pivoting away from hours-focused rewards. Their new system, rolling out in the next financial year, will emphasize business generation, collaboration, and department engagement over pure billing targets.
Elsewhere, A&O Shearman has tied bonuses to office attendance, with reports earlier this year indicating that associates who sidestep the firm’s in-office requirements risk losing their performance pay.
As firms vie for top junior talent, these evolving bonus schemes reflect a broader industry effort to balance performance incentives with sustainability and workplace culture.
