New Zealand Law Society/Momentum Legal Salary Survey 2011: Key Findings

The survey was conducted online in September and October 2011. All New Zealand lawyers who held a current practising certificate were invited to participate. Over 1,100 responses were received, which was about 10% of the profession and is regarded as a reasonable level of participation statistically.

Most respondents were employees and this is the focus of analysis. The survey does not cover partner earnings in any detail.

The objective of the survey was to secure indicative information on New Zealand legal salary levels. Data analysis was undertaken by an independent analyst, in consultation with Momentum.


Report on Key Findings

This report provides information on some of the key findings of the survey. A full report will be available on 16 December 2011. This will be published as a downloadable file on the Law Society’s my.lawsociety website. The full report will provide information on benefits, employment satisfaction ratings, salary increases, gender differences and other data, in addition to the annual salary information provided here.


Terms used in this report

In-house: Refers to lawyers who are employed by non-lawyers to provide legal advice and other legal services to their employer.

In-house Private Sector: Covers in-house lawyers who are employed by a business or corporation.

In-house Public Sector: Covers in-house lawyers who are employed by central and local government, industry associations and unions and not for profit organisations.

Large firms: Refers to law firms with 19 or more partners or directors. This is a broad brush sort of distinction, as there are small boutique firms with few partners which may be more profitable than some large firms and therefore skew the salary results towards the high end for small/medium firms.

Other firms: Refers to all other law firms with fewer than 19 partners or directors and includes sole practitioners.

Year 1, 2, 3 etc: Refers to experience since admission as a barrister and solicitor, starting from the current year. So, Year 1 means an admission date in 2011 (ie, the law clerk year), year 2 – 2010, year 3 - 2009 and so forth.


Private Practice Salaries: National averages

These averages and ranges relate to law firms across all geographical locations, but categorised by firm size. We have generally only listed yearly salary levels from years 1 to 9 as there is much more variability in salaries after that point, suggesting that other factors have more influence on salary than seniority.

Large firms: National Averages

Year

Range

Average

Year 1 (law clerk year)

$42,000 - $54,000

$48,000

Year 2

$46,700 - $59,300

$53,200

Year 3

$54,500 - $65,800

$62,500

Year 4

$63,600 - $79,500

$71,500

Year 5

 $73,500 - $88,300

$82,400

Year 6

$77,000 - $102,300

$92,200

Year 7

$90,500 - $113,400

$101,100

Year 8

$99,750 - $130,900

$114,900

Year 9

$109,000 - $148,300

$128,700


Other firms: National Averages

Year

Range

Average

Year 1 (law clerk year)

$35,200 - $45,700

$39,100

Year 2

$36,400 - $60,500

$45,500

Year 3

$41,100 - $63,500

$51,500

Year 4

$48,386 - $72,400

$60,700

Year 5

$51,917 - $76,300

$67,200

Year 6

 $59,800 - $93,300

$75,200

Year 7

 $65,071 - 103,100

$83,700

Year 8

$73,500 - $113,800

$94,100

Year 9

$83,020 - $125,700

$105,800


Private Practice Salaries: Regional Averages

Auckland

Large firms: Auckland

Year

Range

Average

Year 1 (law clerk year)

$42,000 - $54,000

$48,000

Year 2

$50,300 - $61,500

$53,800

Year 3

$58,600 - $64,700

$63,100

Year 4

$62,500 - $81,000

$73,600

Year 5

$72,700 - $86,000

$81,000

Year 6

$83,000 - $91,000

$88,300

Year 7

$83,500 - $113,300

$98,100

Year 8

$92,000 - $130,700

$111,500

Year 9

$100,500 - $148,200

$124,900


Other firms – Auckland

Year

Range

Average

Year 1 (Law clerk year)

$35,250 - $43,100

$38,100

Year 2

$35,700 - $52,600

$45,400

Year 3

$42,700 - $63,200

$51,900

Year 4

$53,000 - $73,700

$63,300

Year 5

$59,600 - $81,600

$71,300

Year 6

$73,000 - $89,800

$81,000

Year 7

$79,700 - $98,000

$90,700

Year 8

$85,000 - $111,600

$93,400

Year 9

$90,000 - $120,500

$101,000


Wellington

Large firms – Wellington

Year

Range

Average

Year 1 (Law clerk year)

$42,000 - $52,500

$47,700

Year 2

$48,600 - $59,000

$52,800

Year 3

$64,000 - $67,500

$65,700

Year 4

$68,000 - $75,000

$75,000

Year 5

$72,000 - $96,000

$88,000

Year 6

$84,700 - $104,700

$96,700

Year 7

$97,500 - $113,500

$105,500

Year 8

$118,700 - $131,200

$125,000

Year 9

$140,000 - $149,000

$144,500


Other firms – Wellington

Year

Range

Average

Year 1 (Law clerk year)

$33,800 - $41,700

$38,300

Year 2

$45,100 - $53,000

$55,700

Year 3

$50,000 - $69,000

$59,000

Year 4

$61,000 - $78,800

$70,800

Year 5

$65,000 - $82,500

$73,300

Year 6

$70,800 - $86,300

$78,500

Year 7

$72,500 - $102,500

$87,500

Year 8

 $82,700 - $113,800

$98,300

Year 9

$93,000 - $125,100

$109,100


Christchurch

According to Momentum’s Christchurch clients, firms are still recruiting lawyers but only for essential vacancies; not for growth. It is also reported that salary increases appear to be more strongly linked to performance than in the other large cities.

Large firms – Christchurch

There were not enough responses in this section to provide statistically valid data, but the trend appears to be that salaries for junior lawyers are similar to those of their counterparts in large firms in Auckland and Wellington. However, the indications are that more senior lawyer salaries may be slightly lower than those of their counterparts in the other big cities.


Other firms – Christchurch

Year

Range

Average

Year 1 (Law clerk year)

$31,000 - $38,000

$34,600

Year 2

$36,000 - $45,000

$40,600

Year 3

$38,000 - $51,000

$45,000

Year 4

$47,500 - $57,000

$52,200

Year 5

$50,000 - $68,500

$59,200

Year 6

$54,000 - $71,200

$62,600

Year 7

$60,000 - $85,000

$70,000

Year 8

$67,400 – $97,000

$78,600

Year 9

$75,000 - $109,000

$87,500


North Island - Other

These figures relate to survey respondents in all law firms in North Island locations other than Auckland and Wellington.

Year

Range

Average

Year 1 (Law clerk year)

$35,300 - $43,500

$39,300

Year 2

$35,800 - $51,000

$43,300

Year 3

$42,200 - $49,000

$46,900

Year 4

$47,500 - $55,000

$52,000

Year 5

$48,700 - $63,500

$58,200

Year 6

$50,000 - $70,600

$64,500

Year 7

$57,500 - $82,500

$70,000

Year 8

$62,500 - $92,500

$74,500

Year 9

$67,500 - $100,000

$82,000


South Island - Other

These figures relate to participants in all law firms in South Island locations other than Christchurch.

Year

Range

Average

Year 1 (Law clerk year)

$34,000 - $39,000

$37,500

Year 2

$37,500 - $47,300

$41,500

Year 3

$43,000 - $55,000

$49,000

Year 4

$48,000 - $63,500

$57,600

Year 5

 $51,500 - $66,500

$59,700

Year 6

$53,000 - $69,500

$61,500

Year 7

$56,000 - $77,500

$67,500

Year 8

$61,500 - $85,000

$74,000

Year 9

$65,000 - $95,000

$80,000


In-House Salaries

Private Sector

There is wide variation in private sector in-house salaries. Some of the variables which influence pay include: size of company, business sector, area of practice, whether the company is listed or unlisted, whether it is wholly New Zealand-owned or part of an international company, number of lawyers, how much work is done in-house, and location.

All private sector in-house departments

Year

Range

Average

Year 1

$50,000 - $60,000

$55,000

Year 2

$55,000 - $75,000

$65,000

Year 3

$60,000 - $92,000

$77,000

Year 4

$65,000- $104,000

$88,000

Year 5

$75,500 - $130,000

$102,700

Year 6

$90,000 – $140,000

$125,000

Year 7

$115,000 - $161,500

$146,000

Year 8

$120,000 - $177,500

$150,000

Year 9

$129,000 - $199,000

$169,000


Public Sector

For the purpose of calculating averages and ranges, we have grouped central and local government with industry associations and unions and not for profit entities. This is because salary levels were similar across these organisations.

Central and Local Government, Industry Associations and not for profits

Year

Range

Average

Year 1 (Law clerk year)

$41,700 - $48,500

$42,500

Year 2

$46,300 - $55,300

$51,400

Year 3

$56,000 - $75,700

$60,500

Year 4

$58,700 - $73,500

$64,200

Year 5

$63,900 - $72,400

$71,000

Year 6

$67,700 - $94,900

$78,000

Year 7

$72,000 - $99,000

$80,800

Year 8

$77,800 - $101,500

$86,100

Year 9

 $83,600 - $105,400

$97,000


State-owned enterprises, Crown entities and statutory authorities

There was too little data to produce a table for state-owned enterprises, Crown entities and statutory authorities, which have similar employment attributes. The data that was available indicates that salaries in these entities are higher than in the public sector and approaching the lower end of the ranges for the private sector. This is borne out by Momentum’s experience in recruiting for such entities.

One reason for the scarcity of data for years one to nine is that in-house legal teams for these entities tend to be smaller and to hire a higher proportion of senior lawyers to junior ones.

Use of this information

This data is owned by the New Zealand Law Society and Momentum Consulting Group. It may be used but on condition that its source is acknowledged as the New Zealand Law Society/Momentum Legal Salary Survey 2011.

New Zealand Law Society

The New Zealand Law Society is responsible for regulating the New Zealand legal profession and also provides a wide range of services to its members. In its role of issuing practising certificates the Law Society has developed a comprehensive set of demographic information on New Zealand lawyers. The Law Society has participated in this salary survey with the objective of expanding the range of information available to lawyers and law firms.

Momentum Consulting Group

With offices in Auckland and Wellington, Momentum Consulting Group has one of the largest specialist legal recruitment teams in New Zealand. Momentum has recruited lawyers at all levels of the profession, for both private practice and in-house clients, nationally and internationally. Momentum commissioned independent analysis of the data generated by this survey and this report was prepared with input from Momentum’s legal recruitment specialists.