Exclusive: Law firms pay Rs 8-30 lakh after 6 years, less in Delhi; Starting salaries doubled since 2006

Friday, 25 November 2011 By Legally India Analysis

Law firms salary trends (image courtesy of Mint)

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Law firms pay lawyers with six years of experience up to around Rs 30 lakh per annum in Mumbai, revealed analysis of data collected in Legally India’s associate survey, as first published in Mint today.

The data, compiled from more than 50 survey responses for Delhi and Mumbai in 2010, also revealed that there is a significant pay gap between salaries offered in Delhi and Mumbai at all levels.

Fresher salaries have increased hugely, having in many cases doubled from five years ago.

Read Legally India’s full analysis of the history of the ever-rising law firm salaries and fresher pay in today’s edition of Mint, or click here to read online.

Mint will exclusively feature Legally India stories in its paper and on its website every second Friday.

All data submitted in the salary survey was anonymised. In order to ensure no personally identifiable data was published, the above chart is an approximation based on available data points.

Comments

Underhill 25 Nov 2011, 05:59

+3 -1

This was really depressing when I realised that I'm very badly underpaid. I don't think those figures apply to litigation law firms.

Fattu 25 Nov 2011, 07:51

+2 -2

Don't worry, this does not apply to even corporate law firms! I know a very 'large' law firm which 'offers' very large packages but 'pays' one tenth and, then, after working for few years the lawyers forget and forgive and leave for country side!

law firm lawyer 25 Nov 2011, 09:25

+3 -2

A lot of firms which call themselves as above average or in top 10 lot are actually paying below average salaries to their lawyers. Kain, please do some precision work!!!

SCAM 25 Nov 2011, 12:03

+6 -1

IT'S A SCAM - there is still room for salaries paid by Indian law firms to go up. Assuming a first year associate at a top law firm on an average has a billable rate of Rs.5,000 per hour - even if he works only 1,500 hours in a year and the law firm realizes only 50% of his billable time (including write-offs and fixed price deals), the law firm will generate Rs.40,00,000 on the first year associate's labour - which is 4 times the salary of even those first year associate that are paid higher than the so-called 10 lakh psychological barrier. TIME FOR HIGHER PAYS CHAPS!!

Hasini 10 Sept 2013, 13:16

+2 -0

I agree but who hears us...I am pissed with these buggers..

Advocate 25 Nov 2011, 13:30

+4 -0

Come on Kian, you can do better than that. I too graduated this year top of my batch from a young NLU. On my own experiences along with those of my friends from the fraternity, one thing I can proclaim for sure is that the data is limited to few hundreds of lawyers alone. For most of us its so difficult to find a job or rather should I say an opportunity to be even considered for a job. Most of the places are filled by those blessed with uncle partners. Its not an excuse but the fact remains that if one gets hired on the basis of resume or own credentials, the pay level is so low. I know most of the law offices (corporate and litigation both) paying 25k as the starting amount for at least a year. These high rise salaries are just a myth to create in the minds of young law students. I am presently working with a decent real estate law firm in Mumbai where am discriminated on different pay packages on the basis of law school background. Dear Kian, please redraw the bigger picture and try to reflect the agonies of the young lawyers in India. It is an humble request to you all.

In reply to Advocate 26 Nov 2011, 07:23

+3 -0

^ Dude, as you say, "young" NLU. The firms don't trust them. This is for the top tier law schools alone. Yes, people who try to join the lower rung NLUs shouldn't dream about all this.

In reply to Advocate 26 Nov 2011, 07:25

+1 -0

Yes, you are from a "young" NLU. These pay packages are for the people who graduate out of the top law schools. So, kids, do not dream of big bucks if you graduate out of the lower rung NLUs.

US Law Firm Associate 29 Nov 2011, 00:13

From http://abovethelaw.com/2011/11/breaking-cravath-bonuses-are-out-welcome-to-the-2011-bonus-season/2/ - Same applies to India.

[Warning, NSFW: search for "GOING TO DIE" on the AboveTheLaw link]

Fattu 29 Nov 2011, 07:30

U should immediately shift to NOIDA!

sour grapes 29 Nov 2011, 08:50

Please dont demean the young lawyers who get paid well by claiming that this is because of uncle partners. I passed out of top 3 law school last year. Above half my batch gets salaries above 8 lakhs and more than 25% earns more than 10 lakhs. We got our jobs through campus recruitment and it was a reward for our hardwork coupled with the great name that our university has built over the years. I cant speak for everyone, but I had no uncle partner and I believe this was true for most of us.

Like everyone else, I would welcome any increase in the current pays. In fact, I would welcome any increase irrespective of howmuch I am getting paid at the time when the increase is being contemplated. But that is different from claiming that the projected figures on current salaries is inflated. I know personally that the projected figures for Amarchand, Luthra, Khaitan and Trilegal are accurate. Who cares about the rest anyway?

@ Kian - pls clarify? 7 Dec 2011, 04:49

+0 -0

The pay gap reported between Delhi and Mumbai - does it apply to the top firms like Amarchand, JSA, AZB, Khaitan, Luthra et al.? At least at fresher level they seem to pay the same but if you have contrary data, or data to indicate that pay levels change post couple of years PQE, pls clarify?
Many thanks!
LI fan.

kianganz 7 Dec 2011, 06:24

Hi @9 - There was a consistent disparity in top-pay between Delhi and Mumbai firms across the data points (same for the lowest pay).

The pay gap at the fresher level is negligible but because the data we have and the best fit trendline are only approximate, there is an apparent difference in the graph at that fresher level.

Hope that helps,
Kian

Thanks Kian 8 Dec 2011, 07:04

Kian, many thanks – but still confused. Pay disparity is understandable if averages are taken, as Mumbai is India’s commercial capital and has a lot of corporate firms. But grateful if you can clarify whether Mumbai offices (of the top 4-5 law firms mentioned by me) pay more than their Delhi offices at PQE 2 to PQE 5 level. Not asking about the general trend here.
Thanks!

kianganz 8 Dec 2011, 07:10

Hi 9.1... - Yes, as far as I could tell from the collected data, Mumbai offices of firms paid more at the top end than in Delhi.

This probably does not apply across the board though as there will always be some outliers and star performers, which we have tried to compensate for in the analysis.

This also makes some logical sense: living costs are a lot higher in Mumbai than in Delhi so demands for salary would be higher.

Does this not tally with your experience or expectations?

Best wishes,
Kian

Thanks Kian 8 Dec 2011, 07:52

Kian,

Thanks again for such a prompt reply. I remain a fan! A detailed answer for you!

Assume “at the top end” means top pay at the same scale e.g. top pay for PQE 3 lawyers. In principle, the pay at the top firms is supposed to be the SAME for all associates in the SAME PQE BAND till one makes senior associate (only the bonus can vary, and only laterals can be paid less – if laterals are paid more, they are sworn to secrecy). And in practice, I know this is true TODAY for three of the top firms. Hence I wanted to know if your data indicates anything contrary, which indeed seems to be the case.

A few years ago, even the top firms would pay their Mumbai office associates slightly more (with the cost of living logic). Recently (2008-2010), the same pay cheque was on offer for Mumbai and Delhi (at the top firms) – and the understanding was that it remains so till one is senior associate (in 3-4 years).

I guess the best people to answer the question would be associates at the top firms as they would know their pay and the pay in the other city for their batchmates.
Keep up the great work.

Cheers.

P.S. I am not talking of all law firms here but ONLY the ones I mentioned (at comment 9) – others would certainly pay more in Mumbai for various reasons, including profitability and market trend.

legallyright 20 Feb 2012, 15:23

Dear Kian,

1. Can you please do a similar survey comparing the pay at the Bombay and Bangalore offices of such firms?

2. Do firms such as AMSS, AZB,JSA,Trilegal,DSK,Khaitan etc have a common payscale across all their offices?

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