It analyzes compensation by region and specialization to outline the current state of the market
Canadian Lawyer has published a report highlighting significant trends in the Canadian legal salary market.
The report revealed how inflation, cost-of-living pressures, and evolving workforce expectations reshape compensation for lawyers, in-house counsel, and support staff.
According to Robert Half's 2025 Canada Salary Guide, 97 percent of hiring managers anticipate salary increases for legal professionals next year. This optimism stems from a competitive job market where 40 percent of legal employees report being willing to leave their current roles for higher pay. Flexibility remains another priority, with 32 percent of employees seeking greater adaptability in their next job.
Despite rising compensation, dissatisfaction persists. The survey revealed that 93 percent of professionals would leave their roles for just a 10 percent increase in pay, signalling challenges for employers aiming to retain talent.
"In this day and age, it's quite commonplace for lawyers to move around a handful of times throughout their careers – it's not like how it used to be," Robert Half vice president Stacy Manton tells Canadian Lawyer.
Calgary is the top-paying city for law firm lawyers at all experience levels, with first-year lawyers earning an average of $96,154. Toronto ranks highest for in-house counsel roles, reflecting the concentration of corporate offices. Meanwhile, salaries in Montreal and Ottawa remain closely aligned, and Vancouver has the highest cost of living, which impacts salary value.
Regarding taxation, Calgary's lower cost of living and competitive after-tax salaries offer significant advantages. A first-year lawyer's after-tax earnings in Calgary nearly cover the city's cost of living, contrasting with less favourable ratios in Toronto and Vancouver.
While specialization has a limited impact on associate-level compensation in large firms, senior associates and partners in high-demand areas like mergers and acquisitions or corporate tax often earn more. Employment law, real estate development, and tech-related legal work are also experiencing heightened activity.
The 2023 amendments to the Competition Act, criminalizing wage-fixing and no-poaching agreements, are reshaping salary structures. The Impact Recruitment guide suggests that the legislative change could mean law firms and other employers now face increased uncertainty about competitors' compensation strategies, leading to more performance-based pay variability.
According to Dan Cardon, senior principal of legal, compliance, and risk at recruitment agency Robert Walters, the Canadian legal industry faces a "perfect storm for recruitment," with rising compensation demands, workforce turnover, and a heightened focus on flexibility and work-life balance. The Canadian Lawyer report highlighted that firms must adapt by offering competitive pay, robust benefits, and strategic talent retention plans to address these challenges and ensure long-term stability.
Read the full report here.
