Although courts do not pay as well as many law firms, clerkship salaries are comparable to other government salaries, and a year or two as a clerk is a good investment that will probably improve an attorney's long-term earning capacity. The rate of pay for the first year as a federal clerk is at the GS-11 level on the federal government pay scale, with a step increase after bar passage. In 1998, this amounted to just under $40,000 after bar passage. Certain localities also receive special locality increases. State law clerks, on the average, earn slightly less, although most state courts also increase the salary by a few thousand dollars when the state bar is passed, and a few state courts pay higher salaries than federal courts. First year clerk salaries may stretch a little further because many student loan programs do not require that repayment begin until about six months after graduation, or halfway through the clerkship year.
Because of the value of a judicial clerk's contribution to the legal community and even to society, students often find that the personal satisfaction of making such a contribution compensates for the lower salary. A judicial clerkship can open the door to opportunities that may not be available without the clerkship, and most law firms, in setting starting salaries, count clerkship years as if those years had been spent with the firm. Some firms also give judicial clerks credit toward partnership, and some large firms in major cities give a substantial starting bonus to people who have had impressive clerkships.