Allen & Overy (A&O) has raised its trainee pay levels for 2012-13, breaking a three-year freeze on trainee wages.

First-year trainees at the magic circle firm will receive £39,000, up £1,000 from £38,000, while second-year trainees will now take home £44,000, a rise of £800 from £43,200. The changes will take effect from 1 September this year.