Amarchand, Luthra & Luthra, Khaitan & Co and Trilegal have all ramped up their basic starter pay above Rs 10 lakhs, with offered packages including bonuses now running up to Rs 15 lakh at the top end.
Khaitan & Co's Mumbai office made the biggest leap to Rs 10.8 lakh per annum from Rs 7.2 and 8.5 lakh – an increase in base salaries by up to 50 per cent – for the batch joining in June 2011.
Last year Khaitan & Co said it had paid out bonuses of up to 60 per cent of base salaries, while for the batch joining in June 2011 offering a package of up to Rs 4 lakhs as a performance dependent bonus to freshers.
"Is there any other answer but to attract talent?" mused Khaitan & Co Mumbai partner Upendra Joshi about the reason for the hike in starter incomes. "Our philosophy is purely this – we perceive that we are growing and we would like to share the growth right from fresher to the senior most associate."
Khaitan & Co offered the new packages to a total of 12 students it had recruited so far: eight from NUJS Kolkata and four from Nalsar Hyderabad. Joshi said that the firm planned to visit between three and four more campuses, including NLIU Bhopal, GNLU Gandhinagar and the two Pune law schools Symbiosis and ILS.
"We want to visit more colleges but it really depends on what numbers we get at these colleges and it's practically impossible to visit each and every college each year," said Joshi.
"With a little bit of a difference here and there, and in the odd case it might be more accentuated, but most of these colleges are on par with each other. In that sense there's no real downside not being able to visit each and every college," he explained.
Luthra & Luthra upped its base fresher remuneration by 13 per cent to Rs 10.2 lakh, which also applies retrospectively to all freshers who joined in 2010.
Including maximum performance based bonuses the offered package is Rs 12.6 lakh per year and in addition Luthra & Luthra also offers medical insurance benefit contributions equivalent to Rs 3 lakh per year.
Luthra & Luthra senior partner Mohit Saraf said that the firm regularly reviewed its salary figures. "We are moving [the salary of] everybody in the firm and we do that every year with effect from 1 April. I think this year we did in July and then we gave everybody." The pay hike is understood to have been passed at the firm's partner's meeting in early July.
Saraf said that the firm had recruited 35 students so far, with the majority coming from NLU Jodhpur, followed by NUJS, NLSIU Bangalore and Nalsar.
Trilegal has also now offered its upgraded base remuneration of Rs 10.8 lakh per year to all 2011 joiners, a plan that was first reported in June's original Legally India salary survey.
Trilegal offered a maximum bonus of Rs 2 lakh. Mumbai partner Nishant Parikh explained that the bonus was "primarily driven by the number of billable hours and overall performance of the associate and typically internally we've told ourselves that 20 to 25 per cent [of fee-earners] should be between the 90 and 100 per cent mark".
So far this recruitment season Trilegal has recruited 14, said Parikh: six from NLSIU Bangalore, two from NUJS Kolkata, one from Nalsar Hyderabad and five from NLU Jodhpur.
Amarchand Mangaldas, where the previous base salary package was Rs 9.6 lakh, has also offered larger base packages that are understood to be between Rs 10.3 and 10.8 lakh per year, although offer letters have not yet been circulated to students and the figure could still be subject to revision.
The total package offered by Amarchand including bonuses is between Rs 14 and 15 lakh now, according to Legally India interviews with students.
Amarchand's Mumbai region recruited a total of 41 students so far this year, hiring 12 each from GNLU and Nalsar, followed by nine from NUJS Kolkata and eight from NLSIU Bangalore.
Amarchand declined to comment or confirm any figures.
Top bands here and there
AZB & Partners' Mumbai office remains the highest payer, offering a base package remuneration of Rs 11.4 lakh per month, including a "competitive bonus" that was equivalent to other firm's top bands, according to an AZB partner.ICICI Bank increased its start cost-to-company package to Rs 9.05 lakh, which could be paid out on a retainer basis rather than as a salary to effect tax savings, as reported in July.
The top starting salary paid by a US firm to London trainees is £40,000 (Rs 29 lakh) by Bingham, while after two years upon qualification these increase to £100,000 (Rs 72.6 lakh).
Trainee salaries at London magic circle firms are up to £39,000 (Rs 28.3 lakh) in the case of Freshfields Bruckhaus Deringer, increasing to up to £61,000 (Rs 44.2 lakh) after two years upon qualification, according to UK student publication Lawyer2B.
Please help us update this table with accurate information and leave anonymous comments below with tips on pay-hikes or if you receive different salaries from those listed below. Please write "PRIVATE" in your comment if you wish for us not to publish the comment.
2010-11 Indian legal recruiters' offered remuneration | ||
Firm | Base retainer pay (Rs lakh) | Offered total package incl. max bonus (Rs lakh) / other |
AZB & Partners (Mumbai) | 11.4 | "competitive bonus" |
Khaitan & Co (Mumbai) | 10.8 (7.2 - 8.5 for 2010 batch) | 14.8 |
S&R Associates | 10.8 | |
Trilegal | 10.8 (10.2 for 2010 batch) | 12.8 |
Amarchand Mangaldas | 10.3 - 10.8 | 14 - 15 |
Luthra & Luthra | 10.2 | 12.6 (+3 insurance benefits) |
AZB & Partners (Delhi) | 9.8 | "competitive bonus" |
J Sagar Associates (JSA) | 9.6 | |
ICICI Bank | 9.05 (salary with retainer option) | CTC* with other benefits convertible to full retainer after six months. |
Wadia Ghandy | 8.4 | |
Talwar Thakore | 8.4 | |
Desai & Diwanji | 6 - 8.4 | |
Nishith Desai Associates (NDA) | 7.2 (salary) | +4.8 fixed amount is paid out after three years with firm. First-year CTC* figure therefore 12. 12 forms base for 2nd year increase. |
SAIL | 6.6 - 6.8 | |
Phoenix Legal | 6 - 7.2 | |
IFMR | 6 - 6.5 | |
Juriscorp | 4.8 - 6 | |
Pangea3 | 4 - 6 (5 - 7 for 2010-11) (CTC* incl. bonus at top 10 law schools) | |
Lakshmikumaran Sridharan | 4.8 | |
Crawford Bayley | 4.8 | |
Kochhar & Co | 4.2 - 4.8 | |
Supreme Court judicial clerkships | 1.8 - 2.4 (under review) |
*CTC: "cost to company" figure can include other benefits than just base salary.
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Couple of minor points:
- "two private Pune law schools Symbiosis and ILS". Is ILS a private college?
- Luthra salary: "+3 insurance benefits". Even Amarchand gives an insurance benefit, of more than 10 lakhs .... the firms only pay a premium to get the insurance in place. It may be a good idea not to indicate these things as a part of the package.
About the insurance benefit, we will definitely bear this in mind - either we will try and expand to include this information for other recruiters also or remove in future.
Best regards,
Kian
Have things changed or do Indian law firms still follow this practice?
Perhaps the survey would help laterals..who thinks they are paid less then their batchmates in X Y Z firm.
Already law firms in America and England are being asked by clients whether it is really justified in paying lawyers fresh from law school $500 per hour for document review.
If this crazy trend continues, I won't be surprised if the standardised low-end stuff in the so-called elite law firms of Delhi and Mumbai are outsourced to Darbhanga and Manigacchi - akin to what is happening in the LPOs.
There will then be a clamour from these firms and their associates to stop "outsourcing" and favour a sons-of-the soil policy!
Why on earth would anyone have Lexygen as a name for their law firm? I note the trend in India where people setting up their own firms, rather than take on the name of the principals, come up with weird contrived concoctions - with Lex, Juris or Legal.
Agreed, you are in the legal profession must you don't need to shout from the rooftops. Ever heard of an accountancy firm being named "Double Entry Partners"?
And BTW, I don't know about Lexygen, but OXYGEN is free (but may not in the years to come!).
PS: Weird or unusual names do become successful trademarks - Apple (IT), Orange (Telecom), Mango (Apparel), O2 (telecom), 3 (telecom - yes, the number 3 on its own - not 7 up, or even 555 State Express, but 3 is still struggling I think), egg (financial services. Butin the field of law, the "noble profession", names of firms should have some gravitas.
I was just curious to know how much this firm pays as I recently heard that the firm is doing well and is attracting quite a number from NLS.
@ 18, You are definitely out of our profession.. :D
Kian
When Luthra & Luthra can pay the increased salary retrospectively to all freshers who joined in 2010, why the same is not done in Khaitan & Co.
I hope they will also do the same.
Not as 12.9L someone mentioned earlier!
the salary offered is per anumor or per month please clarify ?
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