Talwar Thakore & Associates (TTA) in March bumped up the basic salary it pays to fresh law graduates to Rs 13 lakh per year, excluding a potential performance-related bonus of up to 40 per cent.

TTA partner Feroz Dubash said: “Our fresher pay is currently a base of 13 lakh pa. Bonus is discretionary and up to a maximum of 40 per cent of the base. We always say 13 lakh to recruitment committees, and if they ask we let them know there is a discretionary bonus and while the maximum is 40 per cent, the average is more likely to be between 10 per cent to 20 per cent, and it is discretionary.”

The salary structure at TTA is revised in March of every year, with fresher pay having risen every year for the past few years. Last year it had increased to Rs 12.5 lakh.

“Our salary structure has been geared to mid and senior levels, so there’s been room for raising junior salaries. We’ve been raising those steadily over the past few years,” explained Dubash.

“The bonus also depends on how the firm does. The way the bonus works, there’s an element based how profitable the firm has been, but the majority of it is performance based. It’s not as simple as how many hours you put in. It’s a combination of things: how many chargeable hours you’ve done, and how you’ve contributed. For example, if you’re someone who has developed know-how for the firm, that would be taken into consideration.”

It is understood that the TTA bonus is modelled on the bonus structure of its international best friend firm, Linklaters.

Khaitan & Co has increased its base fresher pay to Rs 14.4 lakh per year, excluding a performance-related bonus of up to Rs 1.8 lakh, Legally India reported last week.

Read a full report on the brewing salary war amongst Indian law firms in Mint today.