Allen & Overy (A&O) has become the latest firm to hike its associate salaries in Germany, as the country’s leading firms continue to compete for the top legal talent.

Newly-qualified lawyers will now receive E95,000 (£65,000), a rise of 19% from a previous rate of up to E80,000 (£55,000). The new rates, which match the top amounts on offer in Germany, will take effect from 1 November.