Bay Street associate bonuses: how they work and when they are paid

Associate bonuses at large Toronto firms sit on top of the base salary scale, but unlike the scale they are rarely published. What is public is a survey median, a few press reports, and what associates tell each other. This guide pulls those together so you know what to expect as bonus season approaches, and what to ask your firm.

What the numbers show

The only broad Canadian data comes from NALP's first Canadian Associate Salary Survey, which collected figures from 66 law offices across five provinces. It reported median performance bonuses paid in calendar year 2024 of $7,925 for associates called in 2024 and $30,000 for associates called in 2017 (NALP).

NALP also noted that bonuses did not rise as steadily with seniority as base salaries did. Those medians cover all participating firms, not only Bay Street, so top-firm figures can differ. For the base pay that bonuses are measured against, see our Bay Street salary scale.

How firms structure bonuses

Most bonuses fall into one of three patterns. Firms rarely publish their policy, so treat these as common shapes rather than rules.

• Discretionary or review-based. The amount follows an annual review that weighs hours, work quality, and contribution. Ultra Vires described discretionary bonuses as the norm at many large Toronto firms (Ultra Vires).
• Hours-based. A bonus tied to billable hours above a target. One associate on the Canadian Law Forum describes bonuses at most large firms topping out around 30 percent, and only for associates who bill well above an 1,800-hour target (Canadian Law Forum).
• Mixed. Lawyers on the forum describe boutiques and mid-size firms using a discretionary amount, a percentage of hours over target, or both, with no standard across firms (Canadian Law Forum).

Firms have also paid one-off special bonuses. In 2021, Torys paid associates 10 percent of salary in May, with a second payment for those who reached a set number of hours by the fall, and most large Toronto firms adopted similar plans (Law and Style).

When bonuses are paid

Timing depends on the firm, and few firms say it publicly. Here is what associates report:

These are reports from individual lawyers, not firm policy. The firm's associate handbook, your offer letter, or a professional development or student affairs contact is the reliable source for your own firm.

What moves the number

• Billable hours against target. At hours-based firms this matters most. In the 2021 special bonus round, associates reported one firm requiring 1,900 combined hours with non-billable time capped at 150 (Canadian Law Forum).
• Which hours count. Ask whether pro bono, business development, and training time count toward target, and whether the firm measures docketed or billed hours.
• Your review. At discretionary firms, partner feedback and your annual review usually drive the amount as much as hours do.
• Year of call. Amounts tend to grow with seniority, though NALP found the trend less clear than for salaries (NALP).

Bonuses and lateral moves

If you are thinking about moving firms, bonus timing belongs in the plan. Read your current firm's policy for whether you must still be employed on the payment date, and ask a new firm whether your first-year bonus will be prorated or whether it will count hours you billed elsewhere. Associates on the forum suggest an outside offer is often the most effective way to get a raise, though you should be ready to leave if your firm does not match (Canadian Law Forum).

Before you weigh two offers, list base pay, bonus structure, hours target, and benefits side by side. Our offer comparison checklist works for associates too, and our guide to Bay Street firm types explains how full-service firms and boutiques differ.

Questions to ask your firm

1. Is the bonus discretionary, hours-based, or both?
2. What is the billable target, and which non-billable hours count toward it?
3. When is the bonus paid, and for which period?
4. Do I need to be employed on the payment date to receive it?
5. For a lateral hire, is the first bonus prorated?

Planning a move after bonus season? Update your lawyer resume now so it is ready when the right role opens.