Tools · Pensions

Salary Sacrifice Calculator

See exactly how a pension salary sacrifice changes your take-home pay — and how much income tax and National Insurance you save.

2026/27 tax year · England, Wales & Northern Ireland

Gross annual salary

Annual pension sacrifice

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What is salary sacrifice?

Salary sacrifice means giving up part of your gross salary in exchange for a pension contribution paid by your employer. Because the money leaves your pay before income tax and National Insurance, you save both — making it one of the most tax-efficient ways to build a pension.

A basic-rate taxpayer typically saves 20% income tax plus 8% NI; a higher-rate taxpayer saves 40% plus 2%. If you earn over £100,000, sacrifice can also rescue your personal allowance — see the 60% tax trap calculator. For the bigger picture, read ISA or pension: where should your money go first?

Frequently asked questions

Does salary sacrifice reduce my other benefits?

It lowers your gross pay, which can affect mortgage affordability, statutory maternity pay and salary-based life cover. Employers often base these on pre-sacrifice ("notional") salary — check your scheme.

Is there a limit to how much I can sacrifice?

Your take-home can't go below the National Minimum Wage, and pension contributions are subject to the annual allowance. Very large sacrifices need care — this tool shows the tax effect, not scheme limits.

Estimates only, not financial advice. Based on 2026/27 rates for England, Wales & Northern Ireland; runs in your browser and stores nothing. Verify with HMRC or an adviser.