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Junior associates at Freshfields Bruckhaus Deringer's German arm will be some of the best paid in the country once a salary boost of €10,000 (£6,800) kicks in this autumn.
As first revealed by German publication Juve, the magic circle firm has increased its base salary for associates to between €90,000 (£61,000) and €100,000 (£68,000) from a previous range of €80,000 (£54,000) and €95,000 (£64,500).
Nikolaus Schrader, recruitment partner for Germany, said: "There has been a war for talent for around two years now."
He added: "This is a continuation of a round of salary increases kicked off in the market around May last year. We're now moving to the top."
The changes come into force in November.
Senior associates will also net a rise of €5,000 (£3,400). Schrader said an associate with six years experience can expect to earn around €170,000 (£115,000).
Associates will also have the chance to further increase their earnings with the introduction of a new bonus scheme which will be allocated both on personal merit and overall firm performance.
"We've not yet set in stone specific criteria," said Schrader. "There is a big discretionary element."