What the 2026 ALPMA/Elias Recruitment Salary Survey Means for Lawyers

The 2026 ALPMA/Elias Recruitment Australian Legal Industry HR Issues & Salary Survey paints a clear picture of a legal market that remains competitive, salary-sensitive and heavily focused on retaining quality talent. While the pace of hiring has become more selective than the post-pandemic boom years, demand for experienced lawyers remains strong, particularly at the Associate and Senior Associate levels.

The survey collected data from 298 law firms across Australia, covering more than 10,495 employees and 70 legal industry positions.

Salaries Continue to Rise Ahead of the National Average

Average salaries across the legal industry increased by approximately 4% over the past 12 months, outperforming the national wage growth figure of 3.4%.

The market is no longer experiencing the extreme salary spikes seen in previous years, but remuneration pressure remains elevated as firms continue competing for experienced talent.

The strongest hiring demand remains concentrated in:

• Associates
• Senior Associates
• Lawyers with 3-8 years PQE
• Specialists in high-demand practice areas

According to the report, 75% of firms expect to recruit solicitors and lawyers over the next 12 months.

Associate and Senior Associate Lawyers Remain the Most In-Demand

One of the strongest themes in the report is the continued focus on mid-level lawyers.

Hiring demand is increasingly targeted at lawyers who can:

• Run matters autonomously
• Manage client relationships
• Supervise junior staff
• Deliver billable outcomes quickly

Firms are becoming more cautious about graduate hiring and are placing greater emphasis on experienced fee earners who can add immediate value.

The market remains especially active for lawyers in:

• Commercial litigation
• Insolvency
• Property and construction
• Insurance
• Cybersecurity and technology
• Intellectual property
• Family law
• Wills & estates

The in-house legal market is also expected to continue to grow, particularly in regulated industries and in legal operations roles.

Retention Is Now the Biggest Challenge for Law Firms

The survey confirms that retention has become the number one HR priority for legal employers in 2026. Talent acquisition and finding quality staff ranked second.

Turnover remains high across the industry, stabilising at 23% overall.

Paralegal and early-career roles continue to experience the highest churn:

• Paralegal turnover sits at 36%
• Large firms reported paralegal turnover of 42%
• Very large firms reported turnover as high as 56%

At the same time, recruitment activity is increasingly replacement-driven rather than growth-driven:

• 53% of recruitment is linked to firm growth
• 47% relates to replacing departing staff

This is one of the key reasons experienced lawyers continue to have strong bargaining power in the market.

Bonuses and Benefits Are Now Standard

The legal sector has also shifted significantly in how it structures remuneration packages.

According to the survey:

• 81% of firms offer bonuses or employment benefits
• 67% provide discretionary bonuses
• 50% offer individual performance bonuses
• 45% provide special recognition bonus schemes

Performance is increasingly driving salary decisions:

• 87% of firms said salary increases are linked to individual performance
• 75% said retaining top talent is a key driver of remuneration decisions
• Only 44% cited inflation or cost of living as the primary reason for salary increases

Interestingly, 90% of firms said they are willing to increase salaries for employees whose performance exceeds expectations.

Flexibility and Stability Matter More Than Ever

Another major theme emerging from the report is what we call the “Big Stay”.

Many lawyers are now prioritising:

• Stability
• Hybrid work
• Career progression
• Workplace culture
• Sustainable workloads

over purely chasing higher salaries.

Flexible working arrangements are now viewed as a minimum expectation by many candidates. Firms that insist on full-time office attendance are increasingly limiting their talent pool.

The market has become more selective on both sides. Employers are hiring more carefully, and candidates are conducting greater due diligence before making a move.

What This Means for Lawyers in 2026

The legal market remains active, but it is no longer purely candidate-driven.

Firms continue to invest heavily in experienced lawyers who can deliver commercial value immediately, particularly at the Associate and Senior Associate levels. At the same time, candidates are becoming more strategic about the opportunities they pursue.

For lawyers considering a move this year, salary remains important, but increasingly it is only one part of the conversation. Flexibility, leadership quality, career progression, bonus structures and long-term stability are now playing a much bigger role in decision-making than they did even a few years ago.

Source: 2026 ALPMA/Elias Recruitment Australian Legal Industry HR Issues & Salary Survey Summary Report.