N.Y. law firm raises starting salaries to $215,000 as lawyer pay race continues

 Large U.S. law firms may be poised for yet another round of associate pay raises, with New York-based Milbank confirming Thursday it is raising salaries by as much as $20,000 depending on seniority.

First-year associates will see their base pay rise from $205,000 to $215,000, while eighth-year associates will see their pay jump from $365,000 to $385,000.

Compensation at the largest U.S. law firms has ballooned over the past year, thanks to both salary increases and bonuses. Many firms have struggled to keep up with client demand for M&A work and other services, leading to a war for talent.

Seven months ago, a series of major U.S. law firms announced they were increasing associate pay, with first-years seeing their base pay rise past $200,000. That wave of pay increases was also kicked off by Milbank, and another cascade of raises is likely after the firm’s latest move.

Milbank’s pay increases are retroactive to Jan. 1, and will apply to the firm’s associates in the United States, London, Asia and Sao Paolo. The new salary scale was first reported by legal blog Above The Law.