Freshfields Bruckhaus Deringer has sliced £3,000 off its two-year qualified salary rate, becoming the first City firm to openly cut a salary band in the wake of the economic downturn.

Two-year qualifieds saw a £3,000 decrease in their salary rises this month when they moved from their 18-month level of £58,000 to an interim salary of £61,000. This compares with the £64,000 pay packet the last batch of assistants to reach this level received in May.