- Average partner now makes £241,000
- Profit growth expected to level off following boom
The average pay of law firm partners has reached £241,000, an increase of 8.5% in a year.
The average taxable profit per partner has been steadily increasing from £187,000 in 2015/16 to reach a record high £241,000 in 2019/20*.
Firms have seen an increased demand across areas such as M&A and property during the post COVID-19 lock down months and that trend continued until interest rates began to rise in late 2021 and early 2022.
Ian Johnson, Partner says, “Leading up to 2020, law firm partners were taking home record earnings. Whilst some industry sectors ground to a halt during the pandemic, law firms saw demand shift to different practice areas.”
“As the UK continues to grapple with the prospect of a recession, and dealmaking remains sluggish following 2021’s boom period, we could expect to see profit growth in some areas level off.”
“However, areas that typically perform well in a downturn, such as restructuring and insolvency, could make up for that to some extent. That may sustain partner pay at a high level.”
Average law firm partner pay – last five years
*Year-end April 6 2020 – most recent data available
**Source: HMRC
