However, staff retention remains a concern for the profession
The legal sector is among the top five sectors when it comes to year-on-year salary growth in Australia and New Zealand, according to the FY25/26 Salary Guide published by recruitment and workforce solutions specialist Hays.
The industry recorded 7.8% year-on-year growth, ranking fourth on the list. It also ranked just behind the media industry in terms of future pay intentions, as 14% of legal employers indicated plans to offer pay increases.
Moreover, 61% of legal professionals were satisfied with their pay and recorded robust salary growth – some respondents considered themselves to be overpaid. Legal professionals at top- and mid-tier firms based in NSW were the most highly compensated, followed by those based in Victoria.
However, while 39% of employees in the legal sector sought salary increases exceeding 5%, just 19% of employers planned to offer this.
In addition, talent retention remains an issue for the sector, with 31% of respondents finding that they were unlikely to progress in their career. Nearly half (45%) saw just minor to moderate opportunities for career advancement.
The Hays report revealed that legal professionals preferred to receive additional annual leaves and family benefits. They also prioritised a good work environment and an employer with a strong brand and reputation.
Thus, Hays recommended hiring managers in legal look into pay structure and performance-based compensation to remain competitive. It also suggested highlighting non-salary benefits like leaves and flexible working arrangements in job offers and internal policies to attract professionals who want work-life balance.
Hays also recommended that law firms present clear career pathways, a structured mentorship model and internal mobility options for lawyers.
