Financial services workers are gaining significant rises in basic pay when moving roles, according to the annual Morgan McKinley City salary survey.

Senior accountants are receiving an average 31% increase, while junior fund managers’ salaries rose 27%.

Robert Thesiger, chief executive of Morgan McKinley, commented: “While actual salary bands may not have shifted dramatically in certain areas of the financial services sector since last year, more candidates are receiving basic salaries at the higher end of bands when they move roles.

“Senior accountants are a good example. The reason for this is simply a case of supply and demand. The financial services market is buoyant, banks are expanding and global opportunities are abundant. This is squeezing an already tight candidate pool and in turn salaries are being pushed up to secure the hire of experienced candidates.”

One example is a senior accountant with four years’ post-qualifying experience received a £19,500 salary hike to £71,500 when moving to a new position within a new organisation.

McKinley used data from the London and Edinburgh financial services markets, comparing salaries in April 2006 with those of April 2005.